Articles by Andrey Nosikov

Shareholders' Agreements Under Russian Law

Over the past 20 years Russian business has been desperately trying to adopt and apply the best U.S. and European legal tools for corporate governance. Shareholders' agreements is one such tool, though one that is still quite new to Russia. Even so, executives' attention should be drawn to this instrument particularly now that corporate relations are in the spotlight of Russian civil law reform. Meanwhile, most foreign executives believe that Russian law is still not flexible enough to introduce better corporate governance or serve as a reliable legal framework for shareholders' commitments.

Penalty as a Means of Enforcing Shareholders Agreements Under Russian Law

  • 13 March 12
  • Pepeliaev Group

Under Article 32.1 of the federal law on joint stock companies, shareholders agreements can be secured, inter alia, by penalty. Being one of the most extensively used means of securing contracts, penalties have been known in Russian legal practice as the one that can be mitigated (reduced) by the court, in case the latter finds it to be excessive.