New Russian Law Recognizes Shareholders’ Agreements in Joint Stock Companies

July 03, 2009
President Dmitry Medvedev of Russia recently signed into law Federal Law No. 115-FZ “On the Making of Amendments to the Federal Law ‘On Joint Stock Companies’ and Article 30 of the Federal Law ‘On the Securities Market’”, which recognizes the right of shareholders to enter into a shareholders’ agreement to govern their relations in a joint stock company. This update reviews the principal changes introduced by the Amendments and considers whether the Amendments are strong enough to move shareholders to apply Russian law to their shareholder arrangements.