ANALYSIS OF CURRENT ISSUES IN THE REGULATION OF MERGER AND ACQUISITION DEALS BY THE RUSSIAN LEGISLATION

Abstract

There is a lapse in the Russian corporate law governing merger and acquisition deals. This is striking as most processes of management streamlining and corporate efficiency boost are in a way related to these deals. Even the existing draft legislation on the issue has been designed to hinder reorganization processes and not facilitate them. It is unclear and controversial to an extent that any reorganization is highly likely to be considered unlawful.

It is clear that realities and related legal challenges require improvements in the regulation of merger and acquisition deals. Incompleteness and lack of detail in the Russian legislative provisions on regulation of M&A deals create a major obstacle for their execution in this country. A law on mergers and acquisitions should address two major issues: ensuring transparency and low cost of the processes involved and balancing the interests of owners and the state. 

Incompleteness and lack of detail in the Russian legislative provisions on regulation of M&A deals create a major obstacle for their execution in this country: the absence of relevant regulatory acts and laws puts at risk the rights of companies taking part in merger and acquisition processes. That is why Russian owners conclude the majority of such deals within foreign jurisdictions.

The amendment of the Russian corporate legislation in line with modern standards and requirements should be moving on gradually but consistently, as it is necessary for today’s economic growth in Russia and the buildup of the Russian economics as an independent and sovereign entity in the global economic system.