Directors of insolvent companies to face increased liability risk

Russian insolvency law provides that directors (and other controlling persons) can be held liable for the failure to file for insolvency in a timely manner and for actions (or inaction) that prevented full repayment of the creditors’ claims. The amendments to the insolvency law, introduced by the Federal Law No. 266-FZ on 29 July 2017 further systematise rules on directors’ liability, elaborate them and provide for effective tools to fight abusive and opportunistic managerial behavior.