Who can be held vicariously liable in case of bankruptcy of the company
If the debtor organization cannot meet its obligations, then the persons exercising control over the company may bear subsidiary responsibility.
The amount of subsidiary liability is the amount of creditors’ claims.
The person controlling the debtor organization is considered to be a legal entity or an individual who has the right to determine the actions of the debtor, also conclude transactions and determine their terms.
The person controlling the debtor may be recognized as the head, chief accountant, any other person who can dispose of more than 50% of the organization’s share.
The court may recognize as controlling any other person who influenced the decision-making. This may be an actual manager or owner who has put a nominal CEO or owner in his place.
The person controlling the debtor company bears subsidiary responsibility for the company’s debts if it is not proved that this person did not influence the company’s activities.
The subsidiary liability of this person may be reduced by the court if the amount of damage caused by him is less than the amount of creditors’ claims.
If the person controlling the debtor proves that there is no fault in his inability to repay the debt, then he is not subject to subsidiary liability.
