Open AccessOn Release from Subsidiary Liability
Author(s) -
Petr N. Korshunov
Publication year - 2020
Publication title -
ûrist
Language(s) - English
Resource type - Journals
ISSN - 1812-3929
DOI - 10.18572/1812-3929-2020-11-14-19
Subject(s) - bankruptcy , creditor , liability , business , legislation , limited liability , order (exchange) , law and economics , subsidiary , limited liability partnership , strict liability , law , accounting , finance , economics , debt , political science , multinational corporation
In this article, the author examines the application of the legislation on subsidiary liability in bankruptcy in order to establish the proper behavior of owners and management of a legal entity in conducting business. Despite the fact that in business activity is always based on risk, the author comes to the conclusion that modern entrepreneurs are obliged to take as many measures as possible to minimize risks if they have any creditors, even if there are no grounds to assume bankruptcy. In such circumstances, it is unlikely that subsidiary liability will be invoked.