LEGAL LIABILITY FOR CAUSING BANKRUPTCY IN NATIONAL LEGISLATION

Abstract

The article examines the legal norms of Ukraine that establish liability for intentional actions leading to the persistent financial insolvency of a business entity, causing harm to creditors. The history of the formation and development of the corresponding norms of civil, commercial, and criminal law, as well as their effectiveness, are analyzed. Examples of law enforcement are provided.

The purpose of this article is to analyze the existing tools for combating the abuse of rights by owners and management of business entities to the detriment of creditors and their evolution in national law.

The authors emphasize the relevance of studying the issue of legal liability for causing harm to creditors, given the need to provide them with additional guarantees of protection of rights, which, in turn, will contribute to increased trust and investment attractiveness of the countryʼs economy.

The inefficiency of the existing norm of criminal law, which provides for liability for bringing to bankruptcy, is stated and the reasons are analyzed.

The conclusion is drawn about the need for further development and application of civil liability of founders, managers, and third parties for bringing a business entity to bankruptcy in the form of subsidiary liability, which has proven its effectiveness.