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Claims for Damages against Company Directors: Summary Review for 2018 and the First Six Months of 2019
16 December 2019
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In 2017 – 2018 the number of claims filed against members of Russian company management bodies for damages caused to the companies by their actions has decreased, however, the number of successful claims became higher as compared with previous periods.
The courts continue to focus on examination of actions by members of executive bodies. The types of conduct that lead to liability mainly related to bad faith behavior and included a wide range of actions, in particular, misappropriation of funds, failure to comply with public law duties imposed on a company, and engagement in competing business with improper use of the company resources.
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