On December 21, 2017, the Plenum of the Supreme Court of the Russian Federation adopted the resolution regarding the liability of the controlling persons in the event of company bankruptcy. The resolution clarified the application of the new law No. 266-FZ dated July 29, 2017 that introduced amendments to the Russian Law on Bankruptcy, including the new chapter III.2 “Liability of the debtor’s executive and other persons in a bankruptcy case.”
Deposit Ins. Agency v. Leontiev, No. 17-MC-00414 (S.D.N.Y. July 23, 2018) [click for opinion]
The Constitutional Court of the Russian Federation has obliged a tax authority to check the relevancy of the claim to recognize a debtor as a bankrupt in terms of prospects and economic feasibility of initiating such dispute.
We recently published a blog identifying issues which cryptocurrency pose in insolvencies; not least identifying and classifying it, how to take control of it and realising value for the insolvency estate.
Given cryptocurrencies are global, the question of how to classify cryptocurrency on insolvency is not limited to just one jurisdiction.
By carrying out entrepreneurial activities, i.e. independent activities carried out at its own risk, aimed at systematic profit from the use of property, sale of goods, performance of works or provision of services, in conditions of market instability, exchange rate fluctuations and consumer demand, the company may experience signs of bankruptcy.
"Termination of the bankruptcy procedure is not the basis for termination of proceedings on the application for bringing to subsidiary liability of controlling persons of the debtor" - this is the conclusion reached by the Supreme court of the Russian Federation considering the complaint of the creditor-applicant in the bankruptcy case.
"17" November 2017 completed the procedure of bankruptcy proceedings of the debtor LLC "Novaport", case A40-70634/2016.
A brief presentation of the essay on the subsidiary liability of shareholders and directors by comparing the approach adopted by the Russian Courts – as recently confirmed by the Supreme Courts – with those of other legal systems, the Italian one in particular, to the debated topic of the identification of the circumstances the occurrence of which make it possible to pierce the corporate veil, a topic that would deserve further attention by the Italian legislators, too.
Президиум Верховного Суда РФ утвердил Обзор судебной практики разрешения споров, связанных с установлением в процедурах банкротства требований лиц, контролирующих должника и аффилированных с ним лиц.
В Обзоре даны важные разъяснения относительно специфики участия в делах о банкротстве лиц, аффилированных с должником и (или) контролирующих его деятельность.
On 21 December 2017 the Supreme Court of the Russian Federation issued clarifications on the liability of controlling parties in the event of bankruptcy.1 These clarifications are important for shareholders and company management, since the changes to the Law on Bank ruptcy and current case law have extended the scope of liability of controlling parties in the event of bankruptcy.
The main cases where controlling parties can be held liable are:
(1) the declaration of bankruptcy of the debtor was not filed in pro per time;
A non-use court action is routine for the IP court. Every year several hundred cases are considered and granted. Sometimes, however, a cancellation action stumbles at unexpected obstacles.