Issues concerning the Choice of a Method of Exercising the Right of Claim for Brining to Subsidiary Liability when Considering an Application

Abstract

By including Сhapter III.2 “Liability of the debtor’s chief executive and other persons in bankruptcy proceedings” into the Federal Law “On Insolvency (Bankruptcy)”, the legislator has extended the procedure of bringing a person controlling the debtor to subsidiary liability. But the established order gives rise to the questions concerning the order of its implementation. Such questions do not always have answers. The paper has examined the problems that arise with determination of the moment when the creditor chooses the method of brining the person controlling the debtor to subsidiary liability, as well as the problems arising due to the direct exercise of the right under consideration. The paper analyzes the peculiarities of the creditor’s choice of a method of disposing of the right of brining to subsidiary liability depending on the bankruptcy procedure in which such a choice takes place. Attempts are made to find an optimal solution to the identified difficulties with the implementation of the procedure under consideration. The paper has examined possible difficulties that may arise when a board of creditors or a creditor committee approves the statement on the sale of the right of claim for bringing to subsidiary liability of the person controlling the debtor. The author also suggests some ways of resolving the problems, offers solutions to the identified problems.