“Time to turn the drawbar”

General Director, Head of Bankruptcy Practice at LEGAL RIGHT Maksim Yuzifovich commented on the situation with bringing managers and business owners to subsidiary liability

The institution of subsidiary liability has existed in Russia since the mid-1990s, but its active development began only a decade and a half later, when a corresponding chapter appeared in the bankruptcy law in 2009.

The introduction of the institution of subsidiary liability is intended to remove unscrupulous participants from the market – those who work through shell companies, mislead creditors by gaining deliberately bad loans, “throw” partners, etc.

It must be said that the number of applications for involvement in SL is growing. As well as the amount of penalties (see chart). But here’s the problem: the share actually received by creditors from foreclosures is low – about five percent. Maxim Yuzifovich, General Director of Legal Right, attributes this to the fact that most of the satisfied claims fall on bank managers, who often manage to withdraw their assets to offshore jurisdictions, which makes their further search and return difficult.

There is no business without risk. At some point, he can bring the enterprise to formal signs of bankruptcy, and then the manager will face the dilemma mentioned above: to go further in the hope that everything will get better, or to surrender to the mercy of the court and creditors.

Author Nikolai Ulyanov, “Expert” No. 17 (1160), the material is published on the site expert.ru