Subsidiary liability of controlling persons in the liquidation of a corporation during bankruptcy: trends in judicial practice

This article examines the legal institution of subsidiary liability of controlling persons for the obligations of legal entities excluded from the Unified State Register of Legal Entities (USRLE). A comprehensive analysis of the regulatory framework and current judicial practice concerning the liability of beneficiaries and company executives in cases of administrative termination of legal entities with outstanding obligations is conducted. Special attention is given to the legal positions of the Supreme Court and the Constitutional Court of the Russian Federation regarding the criteria of bad faith of controlling persons. The author identifies key trends in law enforcement related to the distribution of the burden of proof among the parties involved and determines the conditions for exemption from subsidiary liability in the presence of objective economic reasons for the company’s cessation of activity. Recommendations are formulated to improve the mechanism for protecting creditors’ rights upon the exclusion of legal entities from the USRLE.