Changes to the liability of banks’ shareholders and management
Legal update No 492
Goltsblat BLP would like to inform that Federal Law No. 432-FZ dated 22 December 2014 “On amendments of certain legislative acts of the Russian Federation and on the invalidation of certain legislative acts (provisions of legislative acts)” came into force on 23 December 2014 (“Federal Law No.432-FZ”).
In accordance with Federal Law No.432-FZ the Federal Law “On insolvency (bankruptcy) of credit institutions” is invalidated and its provisions are consolidated into the text of the Federal Law “On insolvency (bankruptcy)”.
The amendments, in particular, apply to the provisions regarding the liability of persons exercising control over a credit organisation who are responsible for bankruptcy of such credit organisation:
the limitation period for initiating proceedings against persons exercising control over a credit organisation is now equal to three years from the date of the decision on declaring a credit organisation bankrupt;
the time period during which persons exercising control over a credit organisation which were held liable are not entitled to acquire or establish control (directly or indirectly) over not less than five per cent of stocks or shares of another credit organisation was reduced from ten years to five years from the date of discharge by such entities of the obligations specified in the court’s decision; and
the time period during which persons held liable are not entitled to hold the offices of the credit organisation's top managers was increased from three to five years.
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