Pre-emptive right in business sale and purchase and establishment of JVs in Russia

For what purposes is the pre-emptive right used in business sale and purchase transactions and establishment of joint ventures?

Rules of the Civil Code of the Russian Federation, Federal Law “On Joint Stock Companies” and Federal Law “On Limited Liability Companies” on a pre-emptive right;

Main types of a pre-emptive right used in practice (right of first offer and right of first refusal, two-level pre-emptive right in establishment of joint ventures);

Possibility of modifying the procedure for exercising a pre-emptive right as compared to the rules of the Federal Law “On Joint Stock Companies” and the Federal Law “On Limited Liability Companies”;

Whether the pre-emptive right can be waived in a limited liability company and a non-public joint stock company;

Admissibility of the pre-emptive right in respect of shares in a PJSC;

Current court practice regarding the procedure for exercising a pre-emptive right:

• pricing issues when exercising a pre-emptive right;
• procedural issues when exercising a pre-emptive right;
• pre-emptive right in case of transfer of shares (participation interest in the share capital) between shareholders (participants) of a company;
• transfer of rights in case of violation of the procedure for exercising the pre-emptive right, conditions of granting of such claim by the court, issues of sham transactions and other issues.

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