Of particular importance for law-enforcement practice are the clarifications issued by the Judicial Chamber for Economic Disputes of the Russian Supreme Court regarding the possibility of holding one company within a corporate group liable for breaches of obligations committed by another company within the same group.
Dmitry Grachyov, Partner at Ermolina & Partners, commented on these clarifications for EG-Yurist:
“A company within a corporate group may be held liable to a creditor of another group company only in exceptional circumstances, since, as a rule, Russian law is based on the principles of asset separation, limited liability, and the independent legal personality of legal entities… The existence of such ‘exceptional circumstances’ must be established by the courts on the basis of an analysis of a wide range of factors, including the corporate structure, the manner in which transactions are concluded, and the degree of involvement of other group participants in the company management.”
The full text of the article is available via subscription.
Published in EG-Yurist, No. 48 (1397), 2025.
Dmitry Grachyov, Partner at Ermolina & Partners, commented on these clarifications for EG-Yurist:
“A company within a corporate group may be held liable to a creditor of another group company only in exceptional circumstances, since, as a rule, Russian law is based on the principles of asset separation, limited liability, and the independent legal personality of legal entities… The existence of such ‘exceptional circumstances’ must be established by the courts on the basis of an analysis of a wide range of factors, including the corporate structure, the manner in which transactions are concluded, and the degree of involvement of other group participants in the company management.”
The full text of the article is available via subscription.
Published in EG-Yurist, No. 48 (1397), 2025.