Legal Liability of CEO
Legal services (legal assistance) for representing interests in court in cases of holding the general director of a legal entity liable
The heads of a legal entity of any organizational and legal form are responsible for the activities of the company in accordance with various norms of Russian legislation.
It is important to remember that in addition to the fact that the director of a legal entity carries out his activities most often on the basis of an employment contract, in addition to disciplinary responsibility, additional types of responsibility are assigned to him. For example, liability in the form of compensation for losses caused to the company, as well as administrative liability of the head as an official for certain administrative offenses, as well as for offenses for which liability is provided for by the Criminal Code of the Russian Federation.
In particular, according to Art. 277 of the Labor Code of the Russian Federation, the head bears full liability for direct actual damage caused to the organization.
As a general rule, Art. 53.1 of the Civil Code of the Russian Federation, a person who, by virtue of a law, other legal act or constituent document of a legal entity, is authorized to act on its behalf, is obliged to compensate, at the request of the legal entity, its founders (participants) acting in the interests of the legal entity, the losses caused through his fault to the legal entity face.
The director of the company may be brought to subsidiary liability in the process of conducting a bankruptcy case if the full repayment of creditors' claims is impossible due to actions (omissions) committed by the head of the legal entity.
The executive body of the organization is also liable for losses caused to the legal entity. Such cases are considered at the initiative of the founders in order to resolve corporate disputes.
Within the framework of the Criminal Code of the Russian Federation, the director of a legal entity can be held liable for the following crimes: commercial bribery (Article 204 of the Criminal Code of the Russian Federation), malicious evasion of debt repayment (Article 177 of the Criminal Code of the Russian Federation), disclosure of trade secrets (Article 183 of the Criminal Code of the Russian Federation) , tax evasion (Article 199 of the Criminal Code of the Russian Federation), etc.
The CEO of a legal entity can be held administratively liable for committing a fairly large number of offenses in various areas of the company's activities. For example, for conducting the activities of an organization without a license or special permits, when their presence is necessary, violation of advertising legislation, late submission of tax returns and other offenses.
Liability of the director of a legal entity may be carried out within the following categories of court cases and disputes:
- corporate disputes;
- bankruptcy cases (subsidiary liability);
- cases within the framework of resolving disputes arising from labor relations;
- disputes regarding bringing the head of the company as an official to administrative responsibility;
- cases on bringing the director of a legal entity to criminal liability;
- other categories of disputes.
The procedure for considering disputes on holding directors of a legal entity liable
Disputes about holding the director of a legal entity liable, depending on their category, can be considered both by arbitration courts (for example, within corporate disputes) and by courts of general jurisdiction (for example, within the framework of bringing to disciplinary liability and criminal liability).
A claim or other pre-trial procedure for resolving a dispute is mandatory in cases provided for by law or an agreement. The need to comply with the pre-trial procedure for resolving the dispute is determined for each case individually.
Disputes about holding the directors of a legal entity liable are diverse and multifaceted, and for their successful resolution it is necessary to take into account many factors that form the grounds for imposing any sanctions on the executive body of the organization.