One of our clients was a minority shareholder in a company that later declared bankruptcy. After the bankruptcy proceedings, the available funds were insufficient to cover all of the company’s debts. In this regard, the company’s creditor applied to the Arbitration court of St. Petersburg and the Leningrad Region with a claim to bring our client and two other individuals to subsidiary liability, since they did not declare the signs of the company’s bankruptcy in time.
Representing the client’s interests, we argued that his share in the company’s authorized capital was less than half. This did not give the client the ability to issue binding instructions, have unrestricted access to the company’s records, or monitor its financial status.
The court agreed with our arguments, refusing to bring our principal to subsidiary liability. The decision of the court of first instance was supported by the courts of appellate and cassation instances.
