Lawyer Pavel PetrovLawyer Pavel Petrov

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Challenging a Russian Creditors’ Meeting Resolution

In briefA Russian creditors’ meeting resolution may be invalidated if it infringes a participant’s rights and legitimate interests or exceeds the meeting’s statutory competence. The bankruptcy court hears the application within the existing case. A properly notified person has 20 days from the resolution; a person not properly notified has 20 days from actual or constructive knowledge, subject to an absolute six-month limit from the resolution date.

Two grounds

Rights infringement or a decision outside the meeting’s statutory powers.

Short period

Record the decision, notice and knowledge dates immediately.

Material defect

A procedural error is assessed by its effect on rights and the voting result.

Resolutions covered

Article 15(4) of Federal Law No. 127-FZ applies to creditors’ meeting resolutions in a bankruptcy case. The applicant must show its procedural interest, a concrete infringement or the absence of meeting competence.

The meeting process is covered separately in the guide to a creditors’ meeting. This page concerns the judicial challenge after a resolution.

Invalidity grounds

DefectCourt reviewEvidence
No proper noticeAddress, method, period and ability to participateMail, EFRSB and electronic messages
Wrong quorum or votesRegister and voting rights on the meeting dateRegister, ballots and minutes
Unannounced agenda itemWhether participants could prepareNotice, agenda and minutes
Excess of competenceWhether the statute assigns the question to the meetingResolution and Federal Law No. 127-FZ
Rights infringementEffect on the applicant and procedureCalculations, records and alternative result
Economic disagreement alone is insufficient. The court does not replace creditor choice where the resolution is within competence, procedurally sound and not proven to infringe rights.

Who may apply

Eligible applicants include persons participating in the bankruptcy case or process and third parties whose rights are affected. The application should explain status and interest. A creditor normally proves its registered claim and voting amount; a non-voting person identifies the affected right.

Time limits

A properly notified person has twenty days from the resolution date. A person not properly notified has twenty days from actual or constructive knowledge, subject to the absolute six-month period from the resolution.

The Supreme Court Review dated 26 December 2018 treats the six-month period as peremptory and not restorable. The twenty-day period may be restored within that six-month ceiling under Civil Code Article 205 where valid reasons are proven. Restoration should never be assumed without evidence.

Application documents

  1. The challenged resolution and meeting minutes.
  2. Notice evidence or proof of missing or late notice.
  3. The claims register as of the voting date.
  4. Ballots and vote calculation where disputed.
  5. Evidence of the applicant’s right and interest.
  6. Competence analysis.
  7. A twenty-day-period restoration request if necessary.
  8. Evidence of service on participants.

Filing and relief

The application is filed within the bankruptcy case, not as a separate civil action. Requested relief should identify the meeting date, precise item and whether invalidity is sought in full or in part.

This remedy differs from a complaint against a practitioner under Article 60, an appeal against a court order and a bankruptcy auction challenge. One event may require distinct remedies with different periods.

Effect of the order

An order invalidating or upholding the resolution is immediately enforceable and appealable. Invalidity of one resolution does not automatically undo every subsequent act; causation and legal consequences require separate review.

Questions

Can a creditor challenge a resolution it supported?

The Supreme Court Review indicates that voting in favour does not always bar a challenge where rights are infringed or competence exceeded, although abuse is not permitted.

Does any notice defect invalidate the resolution?

Not automatically. The court examines materiality, opportunity to participate and effect on rights and outcome.

Is a separate lawsuit required?

No. The special application is heard by the commercial court within the bankruptcy case.

Can the six-month ceiling be restored?

No. The Supreme Court treats it as an absolute peremptory period.

Official sources

Need to review a meeting resolution?

We can assess competence, notice, votes and time limits without promising invalidation absent proven grounds.

Initial consultation