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Supreme Court: Subsidiary liability cannot be imposed on the head of the debtor company just for the fact of exclusion from the Unified State Register of Legal Entity (EGRUL)

Attorney, Head of Litigation and International Arbitration at ART DE LEX Artur Zurabyan presumes: this ruling is interesting, since the Supreme Court states in sufficient detail the criteria on the basis of which courts can implement the concept of «veil piercing» and impose a certain type of responsibility on the parent company or another person controlling the debtor. «Implementation of this concept is extremely rare in Russian courts’ practice, and each case of this kind is widely discussed in the legal community. This case is about possibility of imposition of subsidiary liability on the grounds of obligations of a legal entity excluded from the EGRUL. For this purpose, on top of actual control and confusion of the member’s and the company’s property, it is necessary to prove unfair practice of the member who uses the legal entity structure to circumvent legal norms and avoid their obligations to counterparties», - he reminded.

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