Once Mr. Philip Howarth asked me on LinkedIn about the responsibility of a trust company (as shareholder) in Russia. Here is my answer.It is complicated question. Generally shareholder in Russia do not liable for the debt of company.
But if insolvency of company caused by shareholder the shareholder can be responsible for the company (in the form of secondary liability).
The new article of Civil Code view shareholder as a person which gives binding instructions.
Is a trust the person which can give instructions? Generally yes, as the settler has no power to manage of trust and influence on trust's decisions. Are this instructions binding for russian company? It depends.
So trust can be responsible as a shareholder of a russian company.
But if insolvency of company caused by shareholder the shareholder can be responsible for the company (in the form of secondary liability).
The new article of Civil Code view shareholder as a person which gives binding instructions.
Is a trust the person which can give instructions? Generally yes, as the settler has no power to manage of trust and influence on trust's decisions. Are this instructions binding for russian company? It depends.
So trust can be responsible as a shareholder of a russian company.
