Articles by Maryann Gashi-Butler
One year ago, the adoption of a new law on protection of investor rights would have been big news and the usual deluge of analysis in the press would follow. The new federal law ""On Defense of Rights and Legal Interests of Investors on the Securities Market,"" also called the ""Investor Protection Law,"" was signed into law March 5 and published March 11 with little fanfare or comment. Likewise, the various programs to rebuild investor confidence being discussed at both the legislative and self-regulatory level have regrettably received virtually no public attention. The new Investor Protection Law expands the protections available to investors and introduces new concepts designed to enhance an investor's ability to bring successful claims in court and receive compensation for damage. The law also repeats several of the protections contained in subordinate legislation, but elevates their status by including them in a federal law.
Out in Cold In 1987, when the former Soviet Union introduced joint enterprises with foreign investment, the corporate vehicle the joint enterprise most closely resembled came to be called in the Russian Civil Code the ""limited responsibility society,"" widely known by its acronym ""OOO."" From March 1, 1998, the OOO took its rightful place beside the joint-stock society as an investment vehicle with features fully fleshed-out by a federal law, the Federal Law on Limited Responsibility Societies. Though the OOO is widely used among Russian entrepreneurs, not least because of its relative informality compared with the joint-stock society, most foreign investors have remained leery. This is especially true for those who recall the joint enterprise days. Such apprehensions are unlikely to be alleviated by the mature version.