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    RUSSIAN GOVERNMENT TO RESTRICT EXTRA-JUDICIAL HALTING OF ENTERPRISE ACTIVITY

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    MOSCOW, March 10 (RIA Novosti) - Russian government is preparing a decision on the extra-judicial halting of the activities of enterprises, Andrei Sharonov, the first deputy Economic Development and Trade Minister, said at the 5th All-Russian Conference of Representatives of Small Enterprises on Wednesday.

    According to Mr. Sharonov, there are now dozens of rules that allow ministries and departments to halt the activities of enterprises.

    Mr. Sharonov believes that only an effective state can provide a favorable climate for small business. "The quality of the judicial system indicates the level of the state's effectiveness," he stressed.

    He also said that within the framework of judicial system improvements, a transparent database of rulings from courts in various jurisdictions is being created. The project will be financed by a loan from the World Bank.

    Hostile takeovers based on the limitations of bankruptcy laws are a serious problem. The Government has already prepared amendments to the laws "On Joint Stock Companies" and "On Limited Liability Companies" to make hostile takeovers more difficult, Mr. Sharonov said.

    According to him, amendments to the procedure of the liquidation of enterprises have also been prepared. "It is impossible to liquidate an enterprise on a legal basis now," Mr. Sharonov added.

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