Protecting investors’ interests
The protection of minority shareholders’ rights has a particular importance for Russian market. Much attention has been paid to that matter recently. In particular, regulations concerning shareholder meetings have been developed, the Corporate Management Code has been modernised, and laws against price manipulation and insider information dissemination have been adopted. Nevertheless, conflicts affecting the rights of minority shareholders emerge in different segments of economy.
In most cases majority shareholders are unwilling to share profit with minority shareholders. Majority shareholders often sell assets to companies they own at prices below market levels and later withdraw the surplus from business through investments into other assets or special contracts.
A-Ventures Management Company has extensive experience in representing large industrial groups in companies where they hold minority stakes. We also have experience in working with minority shareholders as a controlling party. We render the following services connected with the protection of the rights of investors:
analysis of companies’ transactions and balance in order to detect money withdrawal through fake transaction and contracts;
detection of related party transactions;
general analysis of business and development strategy efficiency.
Purchase/sales of shares
selling minority stakes to majority shareholders with premium;
consolidation of minority stakes.
Settlement of corporate disputes and special situations
development of solutions minimising the impact of majority shareholders’ actions on minority shareholders’ interests;
execution of investors’ legal rights for the purpose of preventing inefficient corporate activity and making crucial decisions including decisions related to corporate lending and investments;
use of elicited facts of illegal money withdrawal and interested party transactions at court;
representation of minority shareholders during negotiations with majority shareholders for the purpose of terminating corporate activity affecting the legal rights of minority shareholders: termination of money withdrawal bypassing dividends;
negotiations with majority shareholders on the purchase of minority shareholders’ stakes.