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The rules for making shareholders and managers of a debtor liable for its debts, and for challenging a debtor's transactions were amended
Practical Law UK Legal Update 7-385-9679 (Approx. 2 pages)
The rules for making shareholders and managers of a debtor liable for its debts, and for challenging a debtor's transactions were amended
by White & Case LLP
| Published on 28 May 2009 • Russian Federation |
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On 28 April 2009, the Russian Government amended insolvency laws, seeking to streamline the legal framework for challenging antecedent transactions of a debtor that are detrimental to its creditors, and to facilitate piercing a debtor's corporate veil where appropriate.
On 28 April 2009 the President signed Federal Law No. 73-FZ amending Federal Law No. 127-FZ "On Insolvency (Bankruptcy)," dated 26 October 2002 and Federal Law No. 40-FZ "On Insolvency (Bankruptcy) of Credit Organizations," dated 25 February 1999. The Law will enter into force on 5 June 2009.
The amendments seek to streamline the legal framework for making shareholders and managers of the debtor liable for the debtor's debts, and for challenging the debtor's transactions.
In particular, they are intended to better protect creditors' rights by improving a legal basis for invalidating transactions which result in an outflow of the debtor's assets close to the debtor's bankruptcy. A bankruptcy manager will be able to challenge:
- Suspicious transactions (for example, transactions providing for unequal consideration).
- Transactions entailing preferential treatment of certain creditors.
White & Case will issue a special update soon discussing the amendments introduced by the Law in more detail.