Subsidiary Liability
Reversal of a subsidiary liability finding in the Supreme Court of the Russian Federation
Challenge
The insolvency administrator and creditors sought to hold the chief executive of the bankrupt company personally liable for its debts. The lower courts granted the claims.
What was done
The case was taken to the Supreme Court, the good faith of each management decision was proven, and the Supreme Court set aside those court rulings. The amount of liability avoided is comparable to the total amount of creditors' claims in the register.