Difficulties in proving subsidiary liability cases in the absence of bankruptcy proceedings: Gaps and trends

This article examines the legal and procedural issues that arise when holding controlling persons of a de facto inactive (so-called abandoned) company subsidiarily liable beyond the bankruptcy proceedings. It identifies and analyzes the challenges of proving circumstances indicating the controlling person’s guilt in the absence of an insolvency officer and the courts’ insufficient assistance in obtaining evidence for the creditor. The author identifies regulatory gaps and the heterogeneity of judicial practice. In conclusion, measures are proposed to improve legal regulation and develop uniform approaches to the consideration of such cases.