Rights arise for the principal
Transactions made by the attorney in the principal’s name create rights and duties directly for the principal.
Authority needs a fresh check
Insolvency may change who can instruct and dispose of assets.
Accounts need evidence
Expenses, advances and remuneration require the agreement, report and source documents.
Mandate, power of attorney and insolvency
Article 971 of the Russian Civil Code covers legal acts made in the principal’s name and at its expense. The mandate agreement governs the internal relationship, while the power of attorney proves authority to third parties. Both must be reviewed after insolvency begins.
| Document | Function | Check |
|---|---|---|
| Mandate agreement | Task, remuneration, expenses and reporting | Term, termination grounds and unfinished acts |
| Power of attorney | Authority to third parties | Term, revocation, scope and post-filing use |
| Report or act | Actual performance | Date, attachments, objections and acceptance |
| Transfer inventory | Principal’s money, records and property | Identification, balance and authorised recipient |
Action plan for the attorney
Check the case
Find court orders and notices; identify the procedure and office-holder.
Pause risky acts
Avoid new asset dispositions until authority is confirmed.
Prepare a report
List actions, results, expenses, money balance and documents held.
Transfer property correctly
Agree the recipient and method; use an inventory and keep proof.
File the monetary claim
Calculate remuneration and expenses separately by date and evidence.
Documents
- mandate agreement, amendments and correspondence;
- original powers of attorney and revocation information;
- contracts and statements signed by the attorney;
- reports, receipts and bank statements;
- inventory of the principal’s property and documents;
- court orders and EFRSB notices.
Frequently asked questions
Does bankruptcy automatically revoke authority?
There is no safe universal answer without the principal’s status and procedure. Representation and insolvency rules and court orders must be checked.
Who receives the records?
The person lawfully authorised in the procedure, documented by an inventory.
May expenses be claimed?
Yes if agreed and evidenced, but ranking depends on when and why they arose.
May an unfinished transaction simply be completed?
Only after authority, asset restrictions and valid instructions are verified.
Primary legal sources
- Russian Civil Code, Article 971
- Russian Civil Code, Article 975
- Russian Civil Code, Chapter 49
- Russian Bankruptcy Law No. 127-FZ
Related guides
Bankruptcy of an agency principal · Checking an insolvency case
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