The legislation of all countries, including the Russian Federation, establishes stringent requirements for the activities of arbitration managers. This is undoubtedly done to improve the quality of arbitration management, since the completeness of satisfying creditors' requirements depends on the speed and quality of its conduct. During any bankruptcy, it is the manager who decides on key issues relating to the registration of claims, property management, the formation of the bankruptcy estate and its implementation.
Types of Bankruptcy Procedures
The arbitration manager performs such functions at a given stage:
- during the observation procedure, he acts as an interim manager;
- in external leadership - as an external manager;
- in the production process - as a bankruptcy trustee;
- in case of bankruptcy of citizens - as a financial manager.
Its main function is to properly ensure the bankruptcy proceedings to which it is assigned.
What are the requirements for an arbitration manager in order to approve him in a bankruptcy case?
Qualification requirements
The Law "On Insolvency (Bankruptcy)" enshrines the following requirements for the arbitration manager:
- The status of an individual entrepreneur. The manager carries out his activities at the expense of remuneration, and accordingly, his work is entrepreneurial in nature and obliges the existence of registration of entrepreneurial status.
- The presence of any higher education, without restriction on narrow specialization.
- The presence of seniority in the position of manager for at least two years. It is necessary to work as the head of the organization. You can work as an arbitration manager and be the head of a debtor citizen (with the exception of insolvency cases in the absence of a debtor citizen).
- Passing an exam on a theoretical training program for arbitration managers.
- Internship for a period of six months to one year as an assistant manager in an SRO.
- Lack of accountability for crimes in the financial sphere, as well as for any criminal acts above the level of minor severity. To confirm the absence of a criminal record, it is necessary to submit a certificate from the Department of Internal Affairs.
- Membership in a self-regulatory organization (SRO).
- An arbitration manager can only be an individual.
Theoretical exam
The theoretical exam is taken by a commission consisting of representatives of an educational institution and employees of the Ministry of Justice of the Russian Federation. The commission consists of educated people with higher education, possessing degrees in the field of economics, and having professional experience in the field of management for several years (at least three years).
Internship
The internship process is controlled by self-regulatory organizations. Fundamental rules:
- The person becomes able to undergo training after fulfilling the first four points of the requirements for the future manager.
- The internship is free of charge.
- The internship is carried out by two people: the arbitration manager and the internship manager.
- The head of the internship is a member of a self-regulatory organization with more than three years of experience, conducting at least twice bankruptcy proceedings not according to a simplified scheme, without having to prosecute (administrative, criminal) during the period of bankruptcy of citizens.
- The liability of the assistant to any party during bankruptcy is not provided.
- At the end of the internship, a report is drawn up, signed by the internship manager and the head of the SRO.
- Violation of the internship rules is a 100% basis for early termination of the internship of the assistant manager.If a person does not agree with the deduction, he has the right to appeal to the executive authority with a complaint about an SRO.
Additional terms
The bankruptcy creditor has the right to establish additional requirements for the arbitration manager:
- The presence of higher legal education.
- The presence of special education (for example, education in the field of information technology, if the debtor is an IT company).
- Certain work experience in a managerial position.
- The number of bankruptcy proceedings.
- Lack of interest of the person in relation to the debtor or creditors.
- Lack of involvement in the conduct of the debtor's business over the past three years.
Stakeholders include:
- The head of the debtor.
- Board members.
- The debtor’s accountant working in the organization for the period of bankruptcy or during the last year before the commencement of the insolvency proceedings of the company.
- The next of kin (spouse, spouse, siblings, siblings and siblings) of the persons listed in the first three paragraphs.
Arbitration Manager
Many specialists who satisfy the requirements of the arbitration manager do not want to take part in the bankruptcy of citizens due to the absence of typical debtors of any property for recovery and sale. Most cases of insolvency of individuals boil down to declaring a citizen bankrupt, who at best owns the only housing that cannot be recovered.
In the process of bankruptcy of a citizen, the manager must:
- Place a publication in the publication of the journal Kommersant about the bankruptcy of a citizen and began the process of selling his property.
- Post publications to EFRSB.
- Request data from the registry of credit histories about which bureaus have a debtor citizen.
- Send information about the initiation of bankruptcy proceedings against a person to each BCI.
- Assess the financial situation of a bankrupt (ratio of liabilities, income and property of a citizen).
- Open a bank account in a credit institution for crediting a citizen's income.
- Notify the employer of the bankrupt of new details for crediting the income of the debtor.
- Compose and send to the court feedback on the statements of creditors on their inclusion in the register.
- Convene a meeting of creditors and inform them of the register of obligations.
- An inventory of the bankruptcy property status (presence or absence of movable or immovable property, bank accounts).
- Organize tenders for the sale of property of the debtor.
- Transfer funds from the sale of property to the account and divide them between all creditors according to the queue and the proportion of the claimed claims.
- Send a report on your work to the court.
- Complete the bankruptcy procedure of a citizen.
Managers and their legal rights
The arbitration manager has the right:
- participate in court hearings;
- file objections to the claims of creditors;
- sue the recognition of the invalidity of transactions and the application of the consequences of the invalidity of transactions;
- apply to the court with a request to take measures to ensure the safety of the property of the debtor, including the application of a ban on any transactions of the debtor with his property;
- initiate the removal from office of the head of the debtor;
- to request and receive any information about the activities, property of the debtor.
Responsibilities of Arbitration Specialists
The administrator shall:
- report in court on their activities;
- provide information about the debtor;
- keep minutes of the meeting of creditors;
- fill in the register of creditors, their requirements, convene meetings of creditors;
- to offer a procedure for restoring a debtor’s solvency or not to offer it in the absence of a citizen’s financial ability;
- preserve the debtor’s property, including initiating a ban on the debtor’s transactions with his property.
Manager's Compensation
Until October 2016, the arbitration manager of individuals received ten thousand rubles. Very often, because of the low payment, SROs could not provide an individual with a financial manager. This prompted an increase in the amount of payment to specialists of the arbitration department. In case of insolvency of citizens, the amount of payment for the services of the arbitration manager will be twenty-five rubles for one procedure. A specialist will receive seven percent of the total amount if the property of a debtor citizen is sold.
In case of bankruptcy of a legal entity, the monthly fee in rubles for the services of an arbitration manager will approximately amount to:
- interim manager - thirty thousand;
- bankruptcy trustee - thirty thousand;
- external manager - forty-five thousand;
- administrative manager - fifteen thousand.
The arbitral tribunal shall determine the remuneration of the arbitration managers. The obligation to pay this amount arises from the debtor on the basis of a judicial act. The amount of remuneration, which is entrepreneurial income, shall be established by the court. This is a rather unique situation in the financial sector.
The arbitration manager of individuals is of key importance both for the debtor and for all creditors, since it is he who is responsible for proposing a reconciliation procedure for the parties, finding all the property that a citizen has, and checking all transactions of the debtor.