Analysis & Trends
Russia | Changes in the regulation of liability in case of bankruptcy
In July 2017, the Federal Law dated 26 October 2002 No. 127-FZ “On Insolvency (Bankruptcy)” (the “Bankruptcy Law”) was supplemented with provisions introducing, among other things, subsidiary liability of persons de facto controlling a bankrupt company (the “Debtor”) in the event that the Debtor’s assets are insufficient to settle the claims of its creditors . On 21 December 2017, the Supreme Court of the Russian Federation issued a detailed resolution clarifying the implementation of these new Bankruptcy Law provisions in practice.
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