The AT team successfully defended the client’s interests in a dispute on bringing the client to subsidiary liability in the court of appeal

AT’s client was a member of the board of directors of the debtor’s party company.

After bankruptcy proceedings were initiated in respect of the debtor, the bankruptcy trustee claimed for subsidiary liability of the client as a person responsible for bringing the debtor to bankruptcy.

The court of first instance refused to bring the client to subsidiary liability, the arguments presented by the AT team formed the basis of the judgement, but the bankruptcy trustee considered the refusal to be unlawful and appealed it to the court of appeal.

The AT team prepared a strong position and proved to the appeal court that there was no element of an offence in the client’s actions allowing to bring him to subsidiary liability, the client’s actions were purely bona fide, the client did not participate in the approval of transactions that led to bankruptcy, but only participated in voting on issues related to the approval of the debtor’s budgets and reports.

 

The appeal court agreed with AT’s position and left the first instance court’s judgement against the client without modifications.

This victory is significant for AT practice in particular and for judicial practice in general, as courts tend to satisfy claims to bring persons controlling debtors to subsidiary liability, and refuse the declared claims infrequently.

We congratulate our client on a fair judgment!

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