Infocenter

Pavlova&Partners law firm experts defended the interests of the Chief Executive Officer of a major Russian company involved in development of GLONASS in a corporate dispute on recovery of 3.5 billion rubles from the latter.

The case was handled by the litigation project manager Sergei Soldatenko and lawyer Evgeniya Gusyakova.

A claim was filed by the shareholders of the company as they considered that CEO had intentionally initiated the transfer of business from one company to another which has led to the loss of profit for the initial company.

The problem with this case is that there is no judicial practice for similar cases in Russia and there are no provisions in the Law and no clear guidance from the Supreme Court of the Russian Federation regarding the issue. However, Pavlova & Partners lawyers managed to convince the court that no activity of business transfer from one company to another took place. Despite minor losses for the company over several years, all decisions of the CEO were economically justified; they benefited the Company and would benefit it in the future.