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District Court indicated when the director’s subsidiary liability may be reduced

... circumstances. The judicial board of the appeal instance, supporting this position, indicated that the discovered funds went to pay off the current payments, but not to settle with creditors. In this regard, the revealed property would not affect the amount of subsidiary liability in any way. However, the district court looked at the situation differently, recalling that the amount of subsidiary liability of the former director of the debtor was determined on the basis of both the claims of creditors and the aggregate amount of current payments, which ...

The district court clarified the specifics of bringing the head of company to subsidiary liability

... insolvency procedure. Moreover, the court of appeal referred to the fact that at the time of the consideration of the application a decision had not yet been made in another case, within which the bankruptcy manager had requested the documents. However, the district court did not agree with this opinion and outlined a number of important theses. When considering cases of attracting head of company to subsidiary liability due to the lack of the required documentation, it is important to remember the burden of proof. On the one hand, the applicant, in this case, the manager, is obliged to submit to the court the evidence that the failure to submit documents ...

THE COURTS HURRIED TO BRING THE HEAD OF DEBTOR TO SUBSIDIARY LIABILITY AND MADE A MISTAKE

... was considered erroneous in cassation. The bankruptcy trustee submitted an application for bringing the head of debtor to subsidiary liability and referred to several circumstances at once. Among them, there were untimely transfer of the debtor's documentation,... ... instances considered the circumstances listed by the trustee to be proven and brought the former head of debtor to justice, but the district court indicated that the conclusions were premature. It was noted by the cassation that the argument about the untimely ...

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