RL Recovered Losses from General Director and Fined Him for Breach of Duty
In a single day, RussianLegal won two resounding victories in a complicated corporate dispute.
Firstly, the Moscow Arbitrazh Court decided to recover losses from a general director who acted in bad faith and unreasonably thus inflicting financial damage upon his company.
Acting on behalf of his company, the general director acquired a major asset that he used for two years exclusively for private purposes.
The Court agreed with the RL’s team representing the Claimant that the transaction was economically unfeasible as it had been made by the director who acted in bad faith and unreasonably. Consequently, it was awarded that the director would have to indemnify the losses in the amount of the asset costs. It is worthy of note that, as the case was being considered, RL’s lawyers managed to foil the Respondent twice in his attempts of evidence tampering.
Secondly, this corporate dispute was also considered by the Central Bank of Russia (CBR), and RussianLegal managed to defend their client’s interests to impose an administrative penalty on the director who failed to provide full and timely information for preparation of an AGM.
The CBR noted a gross violation of law as the company member was unable to obtain the information he required for proper decision making within a reasonable time. So, the CBR had to make out and send to the Court a report on administrative offence.
Later, a fine will be imposed on the bad-faith company director as a person responsible for the losses inflicted upon the company.