Lawyers of FBK Legal made a report during the Russian Managers Association sitting held on the subject of recovery of damage from top-management.
Recently appeared trend to recover damages from top-management of the companies was discussed by the partners and lawyers of FBK Legal during the sitting of the Russian Managers Association held on April 11, 2012, on the subject of legal and tax regulation. The sitting was attended by the Chairman of the RMA committee, FBK Legal’s head of Corporate Law Practice at , Alexander Ermolenko, head of FBK Legal Dispute Resolution Practice, Anna Grishchenkova, head of FBK Legal?s Financial Investigations practice Alexander Sotov, Valery Eremenko who was representing interests of the general director in the RF Supreme Court of Arbitration during one of the most notorious cases, representatives of the Agency for deposit insurance, Gazprombank and representatives of the leading Russian companies.?
‘Until recently legal norms making it possible to recover damage from the companies? general directors were applied in practice very rarely, - Alexander Ermolenko says. – But now we have a ?precedent? in the Russian court practice: the RF Supreme Court of Arbitration has transferred the burden of evidence from a company to its director. So now it?s the directors who have to prove, that they have not incurred any damage, or that the damage was incurred to the less extent. That means significantly higher risks for any director of limited liability company and joint-stock company?.
‘Until recently legal norms making it possible to recover damage from the companies? general directors were applied in practice very rarely, - Alexander Ermolenko says. – But now we have a ?precedent? in the Russian court practice: the RF Supreme Court of Arbitration has transferred the burden of evidence from a company to its director. So now it?s the directors who have to prove, that they have not incurred any damage, or that the damage was incurred to the less extent. That means significantly higher risks for any director of limited liability company and joint-stock company?.
International principles of control over top-management activities as well as ?precedent? cases resolved by the RF Supreme Court of Arbitration were discussed by the committee members during this sitting. Further practical recommendation for the Russian companies directors were elaborated and questions of audience replied. Issue of criminal prosecution of the directors for the damage incurred by those was considered to be the most ?burning?.
This sitting of the committee was highly rated both by the participants and organizers.
