The bankruptcy manager filed a lawsuit to bring the company CEO to subsidiary liability. In this matter, the company has filed for bankruptcy. After a while, one of the creditors also filed an application for recognizing the company insolvent. A new CEO of the company was appointed, who withdrew the bankruptcy petition.
The court of first instance decided to bring the new CEO to subsidiary liability for not submitting an application for insolvency of the company. He created the conditions for the termination of the bankruptcy case of the debtor, despite its insolvency. The court's approach was supported by courts of appeal and cassation.
The Supreme Court disagreed and dismissed the application. The CEO did not have an obligation to file a bankruptcy petition. At the time of his appointment, this obligation had already been fulfilled by the previous director. The creditor's application for declaring the company bankrupt in the second case was received by the court even before the first case was terminated. In this case, there was no fraud against potential creditors, since it was impossible to conceal from them that the company had signs of insolvency.
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NAZALI TAX & LEGAL |