What is subsidiary liability at bankruptcy and how to be protected from it?
Subsidiary liability at bankruptcy is liability of the head or business owner (sharer) of the company for its debts.
It comes not always, but under certain circumstances.
Among such circumstances are destruction of accounting documents, concealment or property exclusion, negotiation of obviously unprofitable transactions and similar things, because of which the company became insolvent.
Earlier subsidiary liability at bankruptcy existed as the certain concept, having nothing in common with practice.
But since 2010, especially since 2011, courts more often pass decisions on impleading heads and business owners to subsidiary liability.
The reason is unwillingness to liquidate the company officially.
Sometimes the company is simply abandoned, more often it is “discharge” of legal entities to the region and quite often it is the waste of time when aggressive creditor submits an application about bankruptcy and wants, that debtor “get what he deserves”.
To recommend something concrete in this situation difficult, because everyone by himself choose level of risk and responsibility. I mean, that someone prefers to pay little money and legally “conceal” company, bur someone considers that it is better to save money, perhaps will manage.
I am as a person who is engaged in bankruptcy every day, and I understand, that in Russian conditions it is better to be overcautious and liquidate company by yourself, than wait, when creditor or other ill-wisher will do that.
Remember, that those who do not want to spend money for his arbitration manager will spend for somebody elses.