Accepted at the tenth plenary session of Inter-parliamentary Assembly of the State Parties of the CIS by the resolution of December 6, 1997, No. 10-15
About insolvency (bankruptcy)
1. This Law establishes the bases and procedure for recognition by bankrupts of legal entities and physical persons (citizens), regulates relations of the insolvent debtor continuing activities and his creditors, determines methods of recovery of solvency of the debtor, and in case of impossibility or lack of the bases of continuation of activities regulates procedure for satisfaction of requirements of creditors, liquidations of the legal entity - the bankrupt, release of the physical person from debts.
2. Operation of this Law extends on all legal entities, being the commercial organizations (except for the state companies * (1)), and on the non-profit organizations provided by the law.
General provisions about insolvency (bankruptcy) in the part which is not settled by rules of this Law on features of bankruptcy of separate categories of legal entities are applied to bankruptcy of legal entities.
3. The relations connected with insolvency (bankruptcy) of the citizens including registered as individual entrepreneurs are regulated by this Law. The regulations regulating bankruptcy of citizens, containing in other laws can be applied only after entering of corresponding changes into this Law.
General provisions about insolvency (bankruptcy) are applied to bankruptcy of citizens if other is not provided by Chapter 8 of this Law.
1. Insolvency (bankruptcy) (further - bankruptcy) is understood as the inability of the debtor established by court to meet requirements of creditors for monetary commitments and (or) to fulfill duty on payment of obligatory payments.
2. The citizen who is not the entrepreneur is considered incapable to meet requirements of creditors for monetary commitments and (or) to fulfill duty on payment of obligatory payments if the corresponding duties are not fulfilled by him within (three) months from approach of date of their execution and if the amount of its obligations exceeds the cost of the property belonging to it.
The legal entity or the citizen - the entrepreneur is considered incapable to meet requirements of creditors for monetary commitments and (or) to fulfill duty on payment of obligatory payments if the corresponding duties are not fulfilled by him within (three) months from approach of date of their execution.
3. In the presence of the circumstances obviously testimonial of insolvency, and also in other cases provided by the law, the debtor can be declared bankrupt irrespective of terms of insolvency, stipulated in Item 2 these Articles.
4. Provisions, stipulated in Item 2 these Articles, are applied if other is not established by this Law.
1. The structure and the size of monetary commitments and obligatory payments is determined at the time of giving in court of the statement for recognition of the debtor by the bankrupt.
2. For determination of availability of signs of bankruptcy of the debtor the size of monetary commitments proceeding from debt for the transferred goods, the performed works and the rendered services, and also loan amounts taking into account the percent which are subject to payment by the debtor is taken into account.
Subject to payment for non-execution or improper execution of obligations of penalty are not considered in case of determination of the size of monetary commitments.
3. For determination of availability of signs of bankruptcy of the debtor the amount of obligatory payments without the financial (economic) sanctions established by the law is taken into account.
4. The size of monetary commitments is considered established if it is confirmed with the judgment which took legal effect or the documents testimonial of recognition by the debtor of these requirements, and also in other cases provided by this Law.
5. In cases when the debtor disputes requirements of creditors, the size of monetary commitments and (or) obligatory payments is determined by court according to the procedure, the stipulated in Article 60 these Laws.
1. Cases on bankruptcy are considered by court.
2. Proceedings on bankruptcy can be initiated by court if requirements to the debtor - to the legal entity in total constitute at least (five hundred), and to the debtor - the citizen - (hundred) minimum wages established by the legislation if other is not provided by the law.
1. The debtor or the creditor have rights to appeal to the court with the statement for bankruptcy of the debtor.
2. Tax and other authorized bodies have rights to appeal to the court with the statement for bankruptcy of the debtor in connection with non-execution of obligation on payment of obligatory payments.
3. In the cases established by the law, the prosecutor has rights to appeal to the court with the statement for bankruptcy of the debtor.
1. For the purpose of this Law the debtor the citizen or the legal entity whose insolvency is the basis for application of insolvency proceedings to it is recognized.
2. The debtor - the legal entity takes a legal action with the statement for bankruptcy based on the decision of the body authorized according to constituent documents for decision making about liquidation of the legal entity, or the decision of the body authorized by the owner of property of the debtor if other is not provided by this Law.
3. The debtor has the right to take a legal action with the statement for bankruptcy in anticipation of bankruptcy in the presence of the circumstances obviously testimonial of the fact that he will not be able to fulfill monetary commitments and (or) to fulfill duty on payment of obligatory payments at the scheduled time (bankruptcy threat).
1. The debtor's head - sole executive body of the legal entity, and also the other persons performing according to the law activities on behalf of the legal entity without power of attorney or the individual entrepreneur shall file petition of the debtor for recognition by his bankrupt in court in cases when:
- when carrying out liquidation of the legal entity the impossibility of satisfaction of requirements of creditors in full is established;
- the satisfaction of requirements of one or several creditors leads to impossibility of performance of monetary commitments of the debtor in full before other creditors;
- the body of the debtor authorized according to constituent documents for decision making about liquidation of the legal entity makes the decision on appeal to the court with the statement of the debtor;
- the decision on appeal to the court by the owner of property of the unitary enterprise - the debtor is made;
- in other cases provided by the law.
2. The statement of the debtor shall be taken to court, in cases, stipulated in Item 1 this Article, no later than month from the moment of emergence of the corresponding circumstances.
1. The non-presentation the head of the debtor of the statement for recognition of the debtor by the bankrupt in cases and in time, the stipulated in Article 7 these Laws, attracts subsidiary responsibility of the head of the debtor according to the obligations of the debtor to creditors which arose after the expiration, stipulated in Item 2 articles 7 of this Law.
2. In the cases established by the law, the debtor's head physical person, and also individual entrepreneur can be brought to trial.
1. If the statement for recognition by the bankrupt is filed a lawsuit by the debtor in the presence at the debtor of opportunity to meet requirements of creditors in full (dummy bankruptcy), the debtor who filed a lawsuit the statement for recognition by the bankrupt bears damage liability before creditors, caused by submission of such statement.
2. If bankruptcy of the debtor is caused by actions of his founders (participants) or other persons, including the debtor's head which have the right to give instructions, obligatory for the debtor, or have opportunity to otherwise determine its actions (deliberate bankruptcy), then subsidiary responsibility according to its obligations can be conferred on founders (participants) or other persons because of whom the debtor became insolvent in case of insufficiency of property of the debtor by court.
1. Creditors according to monetary commitments are legal entities and citizens (...) * (2), foreign legal entities and citizens, and also state and administrative and territorial units.
2. Competitive creditors have rights to filing of application of the creditor. For the purpose of this Law competitive creditors creditors according to monetary commitments, except for citizens before whom the debtor bears responsibility for damnification of life and to health, and also according to obligations concerning founders (participants) of the debtor - the legal entity, following from such participation are recognized.
The right to filing of application of the creditor in court about recognition of the debtor by the bankrupt on behalf of the state, administrative and territorial unit the state bodies and local government bodies authorized on that have.
3. The creditor according to obligations owing to damnification and on payment of the alimony creditors whose requirements are confirmed with the judgment are recognized or are recognized as the debtor.
4. Regulations about creditors are applied to the tax and other authorities authorized according to this Law on filing of application on recognition of the debtor by the bankrupt in connection with failure to carry out of obligation on payment of obligatory payments if other is not provided by this Law.
5. In case of application of insolvency proceedings the interests of all creditors are represented by the meeting and (or) creditor committee formed according to this Law. From the moment of acceptance to production of the statement for recognition of the debtor by the bankrupt creditors have no right to address the debtor for the purpose of satisfaction of the requirements in individual procedure.
All actions concerning the debtor are performed on behalf of creditors by meeting and (or) creditor committee.
1. Participants of the meeting of creditors with voting power are competitive creditors, and in the cases provided by this Law regarding requirements for obligatory payments - tax and other authorized bodies. The employee representative of the debtor participates in creditor meeting.
The organization and carrying out creditor meeting are performed temporary, external, by the receiver (managing directors in case of bankruptcy).
2. Are within the competence of creditor meeting:
1) decision making about introduction and prolongation of external management (sanitation) and the address with the corresponding petition to court;
2) decision making about the conclusion of the voluntary settlement;
3) decision making about appeal to the court with the petition for recognition of the debtor by the bankrupt and opening of bankruptcy proceedings;
4) decision making about election of members of the committee of creditors, determination of its quantitative structure and early termination of their powers;
5) the solution of other questions provided by this Law.
3. The competitive creditor has on creditor meeting the number of votes pro rata to the total amount of requirements of competitive creditors to the debtor according to the monetary commitments and (or) obligatory payments recognized according to this Law established on date of creditor meeting.
4. If other is not provided by this Law, creditor meeting is competent irrespective of number of the voices of competitive creditors provided on it provided that the last were properly notified on time and the venue of creditor meeting.
1. Creditor meeting is convoked at the initiative of the managing director in case of bankruptcy, or according to the offer of creditor committee or competitive creditors whose requirements for monetary commitments and (or) obligatory payments of the debtor constitute at least one third of total amount of the requirements entered in the register of requirements of creditors or at the initiative of one third of number of competitive creditors.
2. Creditor meeting at the initiative of creditor committee or competitive creditors is convoked by the managing director in case of bankruptcy in two weeks from the moment of the address with the corresponding statement to the managing director in case of bankruptcy.
3. Creditor meeting is held in the location of the debtor if other is not established by meeting (committee) of creditors.
1. Solutions of creditor meeting on the questions put to the vote are accepted by a majority vote from poll of the creditors who are present at meeting if other is not provided by this Law.
2. By a majority vote from total number of voices of competitive creditors the following decisions of creditor meeting are made:
- about introduction and prolongation of external management (sanitation) or about appeal to the court with the petition for recognition of the debtor by the bankrupt and opening of bankruptcy proceedings;
- about appeal to the court with the petition for replacement of the managing director in case of bankruptcy;
- about appeal to the court with the petition for discharge of the managing director in case of bankruptcy;
- about the conclusion of the voluntary settlement.
1. Number of votes which the competitive creditor has is determined according to the register of requirements of creditors.
2. In the register of requirements of creditors the information about each creditor, the size of its requirements for monetary commitments and (or) obligatory payments, priorities of satisfaction of each of its requirements are specified.
3. The disagreements arising between competitive creditors, tax and other authorized bodies and the managing director in case of bankruptcy about structure, the size and priority of satisfaction of requirements for monetary commitments and (or) obligatory payments, are considered by court according to the procedure, provided by this Law.
4. The disagreements arising between the employee representative of the debtor and the managing director in case of bankruptcy about structure and the size of requirements for compensation, dismissal wage payment to persons working according to employment contracts (contracts) are considered by court according to the procedure, provided by this Law.
5. Access to the register of requirements shall be provided to creditors.
1. The creditor committee represents the interests of competitive creditors and exercises control of actions external and the receiver according to the procedure, provided by this Law.
2. If the number of competitive creditors of the debtor less (fifty), the solution of creditor meeting can be provided implementation of functions of creditor committee directly by creditor meeting.
3. For implementation of the functions assigned to it the creditor committee has the right:
- demand from external managing provision of information on financial condition of the debtor and the course of external management;
- demand from the receiver of information on the course of bankruptcy proceedings;
- appeal in court of action external and the receiver in the cases provided by this Law.
4. Representatives of competitive creditors can be part of creditor committee.
5. Decisions of creditor committee are made by a majority vote from total number of members of the committee of creditors and are brought to the attention of members of regular meeting of creditors.
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