Sergey Bakeshin has talked to participants from the business group Equium about subsidiary liability  

Head of the Dispute Resolution and Insolvency Practice at Maxima Legal, Sergey Bakeshin, has given a presentation at the business breakfast for business group Equium in St Petersburg.

During the event, Sergey explained the mechanism of subsidiary liability, commented on the list of controlling persons, the grounds and timing for imposing obligations on a company’s debts, as well as the procedure for ending creditors rights to make claims against controllers.

In the summer of 2017, changes were made to the insolvency legislation, clarifying the concept of controlling the debtor and tightening subsidiary liability for a company’s debts. According to federal statistics, the use of the mechanism of subsidiary liability is becoming more and more widespread in the commercial courts. Over the past year, 2,125 people incurred liability for business debts, which is 2.3 times higher than the same indicator in 2017 and 4 times that in 2016.

The Equium business community is a closed club for entrepreneurs founded in 2016 with innovative ideas, inspiring success stories and the potential to scale the business internationally. Membership in the club is based on strict selection, including criteria for compliance with the moral and ethical principles of the community, as well as formal requirements.

You can learn more about the Equium business community on its website.