Report to Russian Center for Capital Market Development: Comparative Analysis on Legal Regulation of the Liability of Members of the Board of Directors and Executive Organs of Companies (Russian Language Version)

Abstract:     
This is the Russian language version of the Report. The English version is available at http://ssrn.com/abstract=1001990

This Report was prepared, with support by the World Bank, for the Russian Center for Capital Market Development and the Russian Federal Service on the Securities Market. We discuss the liability under company law of members of the board of directors, senior managers, and controlling shareholders of public companies in Canada, France, Germany, Korea, the United Kingdom, and the United States (plus a more limited look at Austria, the European Union, Italy, Japan, and Latvia), and apply this comparative analysis to the Russian context. We recommend amendments to the Russian Law on Joint Stock Companies and related legislation. We propose measures to enhance the effectiveness of derivative suits; define the concepts of good faith and conflict of interest; establish duties of disclosure and confidentiality, extend duties under company law to controlling shareholders and de facto directors for conflict of interest transactions; protect directors against liability for business decisions adopted without a conflict of interest. We do not recommend the creation of significant administrative or criminal liability, nor expanded duties of directors for a company in financial distress.

A revised and updated version of this Report was published as Правовое регулирование ответственности членов органов управления: анализ мировой практики (Альпина Паблишерз, 2010). This book is available at http://ssrn.com/abstract=1528182)

Note: Downloadable document is in Russian.

Keywords: Russia, company law, liability of directors and officers

Working Paper Series