Plenum of Higher Arbitrazh Court Clarifies Certain Issues of D&O Liability

14 January 2014
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Key takeaways:

  • On August 20, 2013 the Higher Arbitrazh Court of the Russian Federation (“VAS”) published Plenum Ruling No. 62 of the Higher Arbitrazh Court dated July 30, 2013 on Certain Issues Related to Indemnification by Persons who are Members of Corporate Bodies (the“Ruling”) on its official website, in which arbitrazh courts were provided with clarifications on a wide range of issues arising in court practice when hearing cases on recovery of losses incurred by a legal entity through the actions[1] of persons who are or were members of its corporate bodies (“Directors”).
  • Not only did this VAS Ruling summarize legal positions already articulated in court practice, it also introduced a whole range of new issues that, in our opinion, could have a significant impact on the development of court practice related to Directors’ and Officers’ liability for losses incurred by a legal entity through their actions.