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    Medvedev submits amendments to fight corporate raiding in Russia

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    Russian President Dmitry Medvedev on Tuesday proposed amendments to the country's criminal legislation to fight the illegal seizure of companies.

    Russian President Dmitry Medvedev on Tuesday proposed amendments to the country's criminal legislation to fight the illegal seizure of companies.

    Corporate raiding has been practiced in Russia by criminal groups and unscrupulous dealers since the country's transition to a market economy in the early 1990s, posing a serious threat to successful Russian entrepreneurs and damaging the investment climate in the country.

    According to information posted on Tuesday on the website of the State Duma, the lower house of Russia's parliament, Medvedev, who has a degree in law, has proposed introducing a new article to the criminal code stipulating punishment for falsifying the state register of corporate entities.

    Punishments for infringing the new law will range from fines of between 100,000 rubles ($3,400) and 300,000 ($10,200) rubles or a prison term of up to two years.

    The amendments also stipulate responsibility for entering deliberately false information into the register of securities holders. This offence will be punished either in the form of a fine of up to 300,000 ($10,200) rubles or a prison term of up to two years.

    Similar punishment is stipulated for falsifying a decision by a general meeting of shareholders or a decision by the board of directors.

    The coercion of a shareholder to vote in a particular manner or waive voting will be punished with a prison term of up to five years.

    MOSCOW, April 6 (RIA Novosti)

     

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