Legal mechanisms of removal of the liquidator from the bankruptcy procedure

About the authors:

Alexey P. Kuznetsov, Cand. Sci. (Law), Associate Professor at the Department of Civil Law Disciplines of the Russian Legal Academy of the Ministry of Justice of the Russian Federation (Kaluga branch), General Director of Legal Firm Delovoy dom
Viacheslav N. Khokhlov, Cand. Sci. (Law), Arbitral Administrator, a Member of Interregional Self-Regulated Organization of Arbitration Managers Assistance

Abstract:

One of the most pressing problems in bankruptcy cases proceedings in Russia is suspension of arbitration managers. This paper is devoted to this issue and dwells upon mechanisms of former Trustee removal from a bankruptcy procedure and appointment of a new Trustee. The Trustee is a person exercising operational control procedures; their competence comprises analysis of a debtor’s financial condition, creditors’ meetings managing, registering and evaluation of bankruptcy estate property, definition of bankruptcy estate, including relevant property from third parties by claiming, sale of assets, payments to creditors, etc. Based on the activities of the liquidator, the issues of suspension as a measure of liability for the improper performance of their duties are particularly important. The removal of a liquidator is a way of rights and legitimate interests protection of the parties participating in bankruptcy procedures, given that other remedies show no effect. The authors analyze three main mechanisms of Trustees’ removal from bankruptcy proceedings. This article discusses some controversial provisions of the Federal law “On insolvency (bankruptcy)” concerning procedures for liquidator removal and recovery. The former Trustee removal procedure and appointment of a new Trustee are also described in details.

References:

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