Absent Director = Fraudulant Company?
When tax inspectors arrived at the address stated in the company’s documents and didn’t find anyone, they concluded the company was fraudulent. However, a court overturned this conclusion, saying that the director’s absence from the office on a particular day does not prove a company fraudulent.
The court further stated that a company who holds a “nominal” legal address, or one that is different from its physical location, is not necessarily fraudulent either.
The fact that tax inspectors didn’t find anyone at the company’s registered address only shows that the general director, who carries administrative functions and does not have personnel, was absent from the facility, and not that the company does not exist at the given address (Resolution of the Federal Arbitration Court for North-Western District from September 20, 2007 on the case # А56-36540/2006).
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