Senators are considering a bill on a new procedure for managing external business
The State Duma adopted in the first reading a bill on the management procedure in foreign companies, where the share of foreign business is more than 25 percent. It is permissible to introduce external management only in companies that intend to leave the Russian market.
External administration can be introduced only in socially significant companies that
• Produce socially significant goods
• Market monopolists
• Companies in single-industry towns
The branch office can initiate the introduction of an external administration, transfer the project to the Ministry of Economic Development, which in turn begins the process in the arbitration court. During the process, an external manager is appointed.
There are two ways to introduce external administration: by transferring the powers of the director or by selling shares.
The State Duma emphasizes that the external administration will be introduced exclusively by a court decision.
For the introduction of external management, the criteria will be developed by the second reading. The issue of the possibility of external management in companies with state participation also remains debatable.
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