Proof of Good Faith as a Way to Protect Persons Controlling the Debtor Brought to Subsidiary Liability

The article analyzes the protection of persons controlling the debtor from subsidiary liability for the debts of an insolvent organization by proving their good faith. The article explores the challenges faced by individuals held liable in demonstrating the good faith of their actions, depending on the grounds for such liability. It examines current judicial practices and academic sources on the subject. The issue of the fair distribution of the burden of proof regarding good faith in cases involving subsidiary liability is considered. Conclusion dwells upon the fact that it is necessary to introduce into the current bankruptcy legislation a standard for proving the good faith of controlling persons, including specific means of proof, which will bring legal certainty to the resolution of disputes about bringing to subsidiary liability and will allow the formation of sustainable judicial practice.