The legal status of the founders (participants) in the bankruptcy case

The formation of a holistic view of the rights, duties and responsibilities of the founders of a legal entity in insolvency (bankruptcy) relations is necessary to understand the legal nature and features of the mechanism of legal regulation of relations in the field of bankruptcy, to identify areas for improving relevant legislation. The purpose of the study is to examine the set of powers of the debtor's founders (participants) and compare them with the procedures used in bankruptcy proceedings. The analysis of the legal standing of the founders/members of the debtor company in bankruptcy proceedings is conducted. The necessary limitations on their legal standing in order to prevent unfair behavior are identified. The relationship between the set of powers of the founder/member and the goals of the particular bankruptcy process is explored. The issue of holding the found-ers/members liable for subsidiary liability as controlling parties of the debtor is addressed. The research methods employed include analysis, synthesis, legal modeling, legal-technical analysis, and comparative law. A conclu-sion is drawn regarding the connection between corporate governance models and the legal standing of a debtor entity. The peculiarities of differentiation of the status of founders during separate bankruptcy procedures are considered. The necessity of changing the bankruptcy legislation in terms of toughening the responsibility of the founders (participants) of the debtor in connection with their abuse of their rights is substantiated.