Legal and physical person: a bit of responsibility

Among start-up entrepreneurs, who choose the form of ownership for their business, there is a widespread opinion that the founder of an LLC, unlike a private entrepreneur, does not respond with its property to creditors, happen that. Well, there is every reason to believe so, but there is one "but."



In part 3 of article 3 of the Law on Limited Liability Companies it is written:

“In the event of insolvency (bankruptcy) of a company due to the fault of its participants or the fault of other persons who have the right to give instructions obligatory for the company or otherwise have the ability to determine its actions, the said participants or other persons may be charged with subsidiary responsibility for his obligations. "

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About subsidiary liability is written in article 399 of the Civil Code .



Thus, if someone makes an LLC with a minimum authorized capital, starts working, screws up and goes bankrupt, then they can make them respond with their property. Judicial practice is.