Since 01.05.2016, the Director is fully liable with all his/her property for the damages inflicted on the company.

The court may deliver a judgement obliging the director to compensate for the damages inflicted upon the business entity if it is proven that they have been inflicted as a result of the director's action or lack of action. The amount that may be collected as compensation is not limited, and the director as an individual is liable within all of his/her property.

This lawsuit against the director may be filed by any member of the business entity holding ten or more per cent in the authorised capital. This opportunity has been given to members of the company by the Law of Ukraine “On Amending Certain Legislative Acts Regarding Protection of Investors' Rights”.

When this case is considered, the director needs to prove that the damages referred to by the claimant have not been inflicted through his/her fault. In general, the law is drafted in such a manner that the correct litigation strategy will allow the director to protect himself or herself from the lawsuit and avoid negative consequences in the form of financial losses.

Pragnum Law Firm has successfully resolved disputes arising out of corporate relations and offers services of solution of conflicts between directors and members of companies, in particular:

• Determination of a circle of persons who may be filed a lawsuit for compensation for losses;
• Analysis of a potential dispute over collection of losses inflicted on the business entity by director's action or lack of action from the official;
• Resolution of the conflict between members and the director in court or by alternative extra-judicial means (mediation);
• Representation of the Client's interests in court.

Use our experts' experience to solve corporate conflicts efficiently.