{"id":13524,"date":"2025-02-06T16:38:50","date_gmt":"2025-02-06T14:38:50","guid":{"rendered":"https:\/\/bargen.com.ua\/?p=13524"},"modified":"2025-02-06T16:38:52","modified_gmt":"2025-02-06T14:38:52","slug":"director-39-s-statement-on-bankruptcy","status":"publish","type":"post","link":"https:\/\/bargen.com.ua\/en\/2025\/02\/04\/vidpovidalnist-dyrektora-za-dovedennya-do-bankrutstva\/","title":{"rendered":"Director's liability for bankruptcy"},"content":{"rendered":"
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We have already told you before in articles<\/a> that the director of the enterprise is liable for losses caused to the company by his culpable actions or omissions.<\/span><\/p>

However, the liability of a manager for damage caused to the enterprise is not the only liability to which a director of an enterprise may be held liable. The issue of liability for actions or inaction that led to the bankruptcy of the company deserves special attention.<\/span><\/p>

In this article, we will examine in detail the conditions under which such liability arises and how courts approach the assessment of a director's actions.<\/span><\/p>

Legal nature of director's liability<\/b><\/strong><\/span><\/h4>

When a company is declared bankrupt, the question arises: can the director be personally liable for the company's debts? Yes, he can, if it is proven that his actions led to the bankruptcy.<\/span><\/p>

As the Supreme Court noted in case No. 910\/13909\/20, the manager's liability for bringing a debtor to bankruptcy is a special type of civil liability. The court emphasized: "The essence of such liability lies in holding the debtor's manager liable as a legal mechanism for protecting and restoring creditors' rights<\/b><\/strong>, who, being unaware of the debtor's insolvency in a timely manner through no fault of his, entered into legal relations with him."<\/span><\/p>

Simply put, if a director has brought a company to bankruptcy through his actions, he will be liable to creditors with his own property. This means that creditors will be able to collect debts not only from the company, but also from the director personally.<\/span><\/p>

It is important to understand that such liability may also arise for former managers. Thus, in case No. 903\/988\/20, the Supreme Court emphasized: "The subject of liability is exclusively the manager of the debtor, including the former head<\/b><\/strong>", since the above provision does not contain any restrictions on imposing such liability on the manager of the debtor, whose powers have ceased at the time of the opening of bankruptcy proceedings."<\/span><\/p>

Grounds for liability<\/b><\/strong><\/span><\/h4>

An analysis of case law shows that several conditions must be met to hold a director accountable:<\/span><\/p>

  1. the presence of signs of insolvency of the enterprise;<\/span><\/li>
  2. causal relationship between the actions (inaction) of the manager and bankruptcy;<\/span><\/li>
  3. the leader's fault.<\/span><\/li><\/ol>

    The Supreme Court in case No. 910\/13909\/20 established that the signs of insolvency are:<\/span><\/p>