One of the key areas of our expertise includes disputes on subsidiary liability, which is one of the most common claims raised in bankruptcy proceedings in Russia. In a nutshell, granting such claim may result in a personal liability of the debtor’s controlling persons (shareholders, CEO and other controlling persons) for the company's debts. Over the past few years, the number of such disputes, as well as the percentage of sustained subsidiary liability applications has been constantly growing, which gives rise to serious risks for business within the framework of the current economic conditions and potential bankruptcy.

Appreciating the difficulties that the international corporations and their Russian-based subsidiaries may experience, ALRUD is well placed to offer services specifically-tailored to the issues of subsidiary liability to minimize possible risks and ensure best possible outcome of litigation.

Our services

  • Analysis of the prospects and risks of bringing to subsidiary liability, developing a strategy for risk mitigation.
  • Representation in disputes on bringing to subsidiary liability, as well as in interrelated proceedings on challenge of the transactions (claw back action).
  • Representation in parallel proceedings on the territory of Russia and in foreign jurisdictions in disputes on bringing to subsidiary liability.
  • Preparation of legal opinions on Russian bankruptcy law for foreign courts and arbitral tribunals in the context of subsidiary liability.
  • Criminal support in insolvency disputes in the context of disputes on subsidiary liability and recovery of damages.

Our Expertise: