Subsidiary liability

What is the main purpose of the principle of limited liability?

• To make directors personally liable

• To protect the personal assets of company members

• To allow creditors to claim personal assets

• To prevent bankruptcy

Subsidiary liability in the context of bankruptcy is intended for:

• Expanding the volume of corporate benefits

• Holding controlling persons accountable when their actions lead to bankruptcy

• Protecting the company's assets from creditors

• Eliminating the role of courts

Which of the following scenarios may lead to subsidiary liability?

• The director signs a contract on favorable terms for the company

• The director withdraws assets to affiliated structures before bankruptcy

• The company operates under normal market conditions

• The company timely files for bankruptcy when in financial distress

According to the document, subsidiary liability is best characterized as:

• Form of criminal liability

• Additional mechanism to the principle of limited liability

• Has no relation to civil law

• Means of protecting shareholders from all risks

Which articles of the Federal Law "On Insolvency (Bankruptcy)" are usually mentioned in such cases?

• Article 50.1

• Articles 61.11 and 61.12

• Article 45.2

• Article 30.5

The principle of limited liability always prevents the risk to the personal assets of directors.

• Yes

• No

Subsidiary liability can be applied when it is proven that the actions of the director, such as transferring assets to affiliated companies, led to the bankruptcy of the company.

• Yes

• No

The institute of subsidiary liability is clearly defined and does not raise doubts in the current legislation.

• Yes

• No

The concept of (a)   liability protects the personal assets of company participants from the company's debts.

When the misconduct of a director leads to the insolvency of a company, the courts may impose (a)   liability to ensure compensation for creditors.