35. Rights and obligations of the external manager

The external manager is not a permanent sole body managing the organization, his powers are temporary and are exercised exclusively on a non-permanent basis. The external manager is vested with his powers in a special order, he is approved by the arbitration court simultaneously with the introduction of external management. The arbitration court shall issue a ruling on the approval of the external receiver.

The ruling on the approval of an external manager is subject to immediate execution and may be appealed. The external manager is endowed with certain rights and obligations in accordance with his status. Its legal capacity is of an exclusively special nature.

The external manager has the right:

1) dispose of the debtor's property in accordance with the external administration plan;

2) conclude a settlement agreement on behalf of the debtor;

3) declare a refusal to perform the debtor's contracts;

4) submit claims to the arbitration court on its own behalf for the recognition of transactions and decisions as invalid, as well as for the application of the consequences of the invalidity of void transactions;

5) carry out other actions provided for by the Bankruptcy Law.

The external manager must:

1) accept the debtor's property for management and conduct its inventory;

2) develop an external management plan and submit it for approval to the meeting of creditors;

3) to conduct accounting, financial, statistical accounting and reporting;

4) in accordance with the established procedure, raise objections to creditors' claims against the debtor;

5) take measures to collect the debt to the debtor;

6) keep a register of creditors' claims;

7) implement the measures provided for by the external management plan;

8) inform the creditors' committee about the implementation of the measures provided for by the external administration plan;

9) submit to the meeting of creditors a report on the results of the implementation of the external administration plan;

10) exercise other powers. The competence of the external manager includes the authority to establish the amount of creditors' claims, dispose of the debtor's property, and may also include the refusal to execute the debtor's transactions. One of the most important aspects of the activities of the external manager is the establishment of the amount of creditors' claims. Establishing the amount of creditors' claims is by no means always undisputed.

The external manager, within three months from the date of the introduction of external administration, has the right to refuse to execute contracts and other transactions of the debtor. In this case, special requirements must be observed. Refusal to execute contracts and other transactions of the debtor may be declared only in respect of transactions not executed by the parties in full or in part, if such transactions prevent the restoration of the debtor's solvency or if the execution by the debtor of such transactions will entail losses for the debtor in comparison with similar transactions concluded under comparable circumstances.

Author: Sazykin A.V.

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