Effective methods of protection of creditors’ rights and balance of creditors and debtor’s interests is of particular importance in case of a serious loss of the charter capital and insolvency. Mechanisms of business structuring, withdrawal of capital through affiliated and related persons, entering into material party transactions with interested parties at non-market prices, change in the participants (shareholders) and officers, invalidation of contracts, statutes of limitations, termination of affiliated guarantor and fraudulent bankruptcy are actively used by debtors to avoid fulfilling obligations towards creditors.

The war in Ukraine has been going on for more than a year, the consequences of which have definitely affected each of us, the economy and business. The destruction of infrastructure, fixed assets, the stoppage and relocation of business, the decrease in the consumption of products and services, the destruction of business relations led to the crisis of non-payments and signs of insolvency of a part of domestic companies. Despite the significant support of the European Union, the International Monetary Fund, and Western partners, the economy of Ukraine is experiencing losses, and a significant number of companies are going to insolvency due to the lack of sufficient reserves and the impossibility of attracting internal and external resources.

Insolvency entails personal risks for the officers and participants (shareholders) of the company and additional obligations associated with a significant loss of capital and the risk of insolvency. The article examines the creditors’ interests protecting in the EU, Ukraine and Germany in the event of the insolvency: the directors and officials duties in the event of a significant loss of capital, insolvency, invalidity of transactions, grounds for holding company officials jointly liable in the event of insufficient assets of the debtor to satisfy creditors’ requirements, limitation and early termination of the manager’s powers, secondary liability of shareholders, related persons, “shadow” directors for insolvency, transfer of creditors’ monetary obligations into shares of a joint-stock company through additional issuance of shares.

Bibliography

Edited books

1. Kamsha N, ‘Problemni pytannia naslidkiv vyznannia nediisnymy pravochyniv borzhnyka u mezhakh spravy pro bankrutstvo’ v Zhukov S (red), Zastosuvannia norm Kodeksu Ukrainy z protsedur bankrutstva. Zbirka naukovykh statei (2019) 92–3 (in Ukrainian).

Newspaper articles

2. Pryhuza P, ‘Problemy vyznannia nediisnymy pravochyniv borzhnyka v protsedurakh bankrutstva’ (Yurydychnyi visnyk Ukrainy. 2013. № 21) 10 (in Ukrainian).

Conference papers

3. Zhukov S, ‘Problemni pytannia vyznannia nediisnymy pravochyniv borzhnyka u spravi pro bankrutstvo’ v Materialy Mizhnarodnoi naukovo-praktychnoi konferentsii “Aktualni problemy protsedur bankrutstva v Ukraini ta mizhnarodnyi dosvid neplatospromozhnosti” (Viazovchenko A, Khanyk-Pospolitak R red, 2019) 51–65 (in Ukrainian).