Dmitry Uryakin told DP about the consequences of bringing entrepreneurs to subsidiary liability

The Delovoy Petersburg newspaper has drawn attention to a steady nationwide trend towards an increase in the number of applications granted by commercial courts to bring company owners to subsidiary liability. If in 2019 the courts validated 41% of applications filed by creditors and arbitration managers, in 2023 – 51%. At the same time, there is an increase in the number of debtors: in 2019, 3.4 thousand businessmen were brought to subsidiary liability, and in 2023 – almost 5.3 thousand. The amount of recoveries last year reached RUB 400 bn within the country.

Personal bankruptcy of an entrepreneur also affects the interests of his family, emphasised Dmitry Uryakin, Senior Associate at Maxima Legal. “The debtor’s financial manager may identify and subsequently sell the property that was acquired by the entrepreneur together with other members of the businessman’s family. As a result, not only the businessman himself will suffer, but also his family members, who often have nothing to do with the correctness of the debtor’s business activities,” the expert explained.

Also, according to Dmitry, bringing a businessman to subsidiary liability turns him into a “toxic” counterparty. Among the consequences of “toxicity” are difficulties in concluding labour contracts with employers and difficulties in providing official services to third parties.

To read the full article (in Russian) please visit Delovoy Petersburg website >>>