The financial manager demanded to provide him with data on the property of the bankrupt’s children to find out about the assets that the bankrupt bought with his own money and simply registered for his sons. But three instances refused him. And the Supreme Court agreed that debtors can use children as fictitious owners. Dmitry Taput, a Senior Associate with Petrol Chilikov, comments on the case:
Dmitriy Taput, Senior Associate at Petrol Chilikov, notes that, in its ruling, the Supreme Court offers a new player referred to as a ‘fictitious owner’ or ‘fictitious asset holder’, i.e. a person, in whose name the debtor registers debtor’s assets, and with whom the debtor has fiduciary relations. ‘One may suggest that jurisprudence will choose to apply the ‘fictitious owner’ category to other persons matching the Supreme Court’s criteria’, the expert states with confidence.
Full article here (in Russian).