Litigation Notes: Abuse of authority of legal entities heads

In our experience the trouble spot is bringing to responsibility the officials of a legal entity for fraudulent actions against this legal entity's interests (LLP). For example, attracting affiliated persons (spouse, relatives of a spouse) as contractors, hiring relatives, purchasing low-quality services from affiliates, enticing clients to affiliates, etc. by an official.

In practice, clients are limited to the dismissal of an official/change of head since real damage is minimal. Moreover, it is incredibly challenging to get compensation for lost profits (from poaching customers, attracting affiliates, etc.).