RusBankrot
We know everything about bankruptcy
01/01/2025
Wednesday
THIS DAY IN HISTORY:
1 January 
2021 Gregorian calendar New Year.
2020 Gregorian calendar New Year
1998 Denomination was held in Russia - a copeck was put into circulation again.
1998 Denomination was held in Russia - a penny was put into circulation again
1935 Surnames were introduced instead of titles in Turkey.
1935 Surnames were introduced instead of titles in Turkey in 1935
1 January
2021 Gregorian calendar New Year.
2020 Gregorian calendar New Year
1998 Denomination was held in Russia - a copeck was put into circulation again.
1998 Denomination was held in Russia - a penny was put into circulation again
1935 Surnames were introduced instead of titles in Turkey.
1935 Surnames were introduced instead of titles in Turkey in 1935
CHANGES THAT SHOULD BE SUBMITTED TO THE BANKRUPTCY LAW WERE OUTLINED BY THE MAIN LEGAL DEPARTMENT OF RUSSIA
The Main Legal Department (MLD) under the President of Russia has given its opinion on the bill, which is supposed to amend the legislation on bankruptcy. The result was a conclusion about the importance of further work on the document, as well as the need to send it for conclusion to the Bank of Russia.
The idea of reforming the bankruptcy law has been ripening for a long time, and now it is being implemented due to the developed bill. The document has undergone many disputes, and the Main Legal Department under the President of Russia expressed its disagreement with a number of provisions.
The distinction between the concepts of ‘bankruptcy’ and ‘insolvency’ was also criticized, since this ‘will require a revision of almost all provisions of the Law for the internal consistency of its structural units’, as well as amendments to a number of legislative acts, where these terms are used interchangeably.
Issues related to maintaining the balance of interests of creditors were raised as well. In particular, this concerns the the right of creditors under current obligations to be able to influence a number of decisions taken at a meeting of creditors, proposed in the draft law. At the same time, as noted by the MLD, in the current legislation ‘a special favorable regime for paying the current payments’ is established.
As for the provision on assessing the effectiveness of bankruptcy trustees and their assignment, the proposed rule requires further elaboration, since in the current version, it is too complex and does not meet the requirements of legal certainty.
The idea of reforming the bankruptcy law has been ripening for a long time, and now it is being implemented due to the developed bill. The document has undergone many disputes, and the Main Legal Department under the President of Russia expressed its disagreement with a number of provisions.
Among the comments voiced in the conclusion (the document is at the disposal of the editors of Rusbankrot), there are questions concerning both the formal part (the name of the law, the use of the words ‘bankruptcy’ and ‘insolvency’) and its main essence.
In particular, it was noted that the proposed title of the new law - ‘On restructuring and bankruptcy’ includes two concepts of different orders of magnitude, since restructuring is one of the stages of bankruptcy. In addition, the committee noted that such a name did not fully reflect the subject of regulation of a normative act, and its renaming would require significant work to amend other legislative acts.The distinction between the concepts of ‘bankruptcy’ and ‘insolvency’ was also criticized, since this ‘will require a revision of almost all provisions of the Law for the internal consistency of its structural units’, as well as amendments to a number of legislative acts, where these terms are used interchangeably.
Issues related to maintaining the balance of interests of creditors were raised as well. In particular, this concerns the the right of creditors under current obligations to be able to influence a number of decisions taken at a meeting of creditors, proposed in the draft law. At the same time, as noted by the MLD, in the current legislation ‘a special favorable regime for paying the current payments’ is established.
The introduction of the proposed rule may simply upset the balance between register creditors and creditors in terms of current liabilities.
In conclusion, the issue of sensational right of the tax authority, the claims of which can be equated to the claims of secured creditors, was also raised. This state of affairs, in the opinion of the legal department, violates the principle of equality of rights of the debtor's creditors.As for the provision on assessing the effectiveness of bankruptcy trustees and their assignment, the proposed rule requires further elaboration, since in the current version, it is too complex and does not meet the requirements of legal certainty.
08.11.2021
