"Director's responsibility: trends and forecasts, IPO". Analyzed by FBK Legal.

26 April 2012
2nd annual conference ‘Director’s responsibility: trends and forecasts. IPO? organized by international insurance company Chartis and Independent Directors Association took place on April 25, 2012 in Moscow.
Anna Grishchenkova, head of FBK Legal Dispute Resolution Practice, attended the conference with the report concerning recovery of damages from top-management of the companies.
According to the expert, legal norms related to recovery of damages from the chief executives were applied in practice rather rarely until recently. ?Nevertheless now we have a precedent created by the Russian SCA in March, this year. Case about 600 million rubles of damage to be recovered from a top-manager was resolved. That means new risks appeared for directors?,- Grishchenkova said. She also emphasized that the question of criminal prosecution of companies? chief executives becomes ?burning? as related to a number of offences: fraud, premeditated bankruptcy, laundering of money received in illegal way etc.


Grishchenkova gave some practical recommendations to the top-managers: “A ?proper director? shall pay closer attention to economical reasonability and profitability of decisions he makes, ensure detailed planning of the deals to avoid affiliation, analyze actual economical content and not just external execution of the deals, since this content will be considered by the court in case of dispute with the shareholders?, - she said. The lawyer also mentioned a number of sources directors may address themselves to when performing their activities: codices of ethics applied y the company and within the branch, constitute documents etc.?


The conference was also attended by the Russian deputy minister of finance Alexei Savatugin, deputy director of department for corporate management, Russian Ministry of economical department, Rostislav Kokorev, deputy head of Federal service for financial markets, Igor Zhouk, president of All-Russian union of insurers Andrey Kigim, managing director for formation of primary market, member of board MMVB-RTS OJSC, Ekaterina Novokreshennykh and others.

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