KIAP Has Successfully Completed the Dispute Heard by the RF Presidium of the High Arbitration Court, While Acting on behalf of EuroChem
In addition to this case importance to the legal community in terms of the civil law, the matter is also very important for businesses in terms of development and popularization of application of the Russian corporate law on the stage of acquisition or sale of the Russian assets. In its essence, the dispute was not just about application by the parties of the norms of the Civil Code but also the laws on limited liability companies with respect to undertaken transactions. Therefore, in the event if the Presidium of the High Arbitration Court had left existing court rulings unchanged, this would have once again caused further damage to the image of the Russian corporate law application standards as perceived by both the Russian and foreign investors, where compared to the norms of the Common Law such corporate law application process is viewed as imposing serious restrictions on the parties’ freedom and compliance with warranties for transactions that involve the assets of both publicly traded or non-publicly traded companies.
The Head of the Legal Department of EuroChem Valery Sidnev said while commenting on the results achieved: “The lawyers of the Law Firm have shown excellent theoretical knowledge of the civil and corporate laws and were able to professionally apply such knowledge in their actual work, having therefore created for our company and for the entire market new additional opportunities to protect interests in the disputes of such nature.”
The declaration part of the Ruling of the Presidium of the High Arbitration Court will be issued shortly and may become the next precedent-creating legal act for all subordinate courts in the Russian arbitration system working on the matters in similar domains of law.
The video of the court session may be watched here.