Article 70. Subsidiary Liability In Case of Incomplete Satisfaction of Creditors' Claims

If the insolvency of a legal entity is caused by unlawful actions of a person as a founder (participant) who shall have the right to issue mandatory instructions for this legal entity, or the owner of the property of the legal entity or the person managing the affairs of the debtor, then subsidiary liability may be imposed on such person for their obligations in case of insufficiency of the property of the legal entity.

Until proven otherwise, the following circumstances, determined in a judicial act, shall be considered to have led to the impossibility of full satisfaction of creditors' claims due to unlawful actions:

if significant damage has been caused to the property rights of creditors as a result of the conclusion in favor of the person managing the affairs of the debtor, or by this person of one or more transactions of the debtor (the conclusion of such transactions at the direction of this person), including the transactions provided for in Chapter 6 of this Law;

if there is a court decision that has entered into legal force on the identification by joint actions of the beneficiaries and affiliated persons of signs of false insolvency, concealment of insolvency or deliberate insolvency of the debtor;

debt arising in connection with the adoption of a judicial act on holding persons managing the debtor's affairs liable for violation of acts of legislation exceeds seventy percent of the total amount of claims included in the register of creditors' claims.

If the illegal actions of several persons managing the affairs of the debtor make it impossible to fully satisfy the claims of creditors, such persons shall bear subsidiary liability jointly and severally.

The court may release a person from subsidiary liability or reduce the amount of liability, unless it is proved that the person brought to subsidiary liability had a decisive influence on the debtor's activities.

The amount of subsidiary liability of the person managing the affairs of the debtor shall be equal to the difference between the sum of the claims included in the register of creditors' claims and the liquidation estate.

If it is proved that the amount of subsidiary liability of the person managing the affairs of the debtor is less than the amount of damage caused to the property rights of creditors through the fault of such a person, the amount of claims subject to satisfaction at the expense of this managing person may be correspondingly reduced.