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Putin Promises to Reflect Portfolio Investor Concerns in the Amended Civil Code

03.10.2012 08:01 / Interfax

Russian authorities will try to reflect not only major companies, but also portfolio investor concerns in the amended Civil Code, said President Vladimir Putin.

The amended Civil Code was passed in the first reading in April, with second reading amendments underway (they total over two thousand at the moment). Code amendments are directed at the foundations of civil law, including a radical reform of corporate management.

The Civil Code was addressed in a question by Alexander Branis, Managing Director at Prosperity Capital Management, an investment company known for its active stand on corporate management, often litigating against majority shareholders to protect minority shareholders rights.

"The passing of the new Civil Code in the first reading sparked fiery debate and was mainly opposed by majors. These companies are predictably against setting straight coporate management issues. Hence my question, do you have a standpoint on this and can we count on your support?", Branis asked Putin.

"I do have a position and am quite aware of this debate, the amendments were due to be passed last year and a lot of effort went into this from the government and the President`s Executive Office. There were, however, many doubts and side notes. The Civil Code is the `economic constitution` and there should be no rush, we are to carefully consider every concern from market participants. Portfolio investors as well as our major infrastructure companies", said the President. "I know the details of all major companies` concerns, they bring it to my attention, talk about it. And ultimately, the matter will be resolved. We will try to eliminate as many obstacles that hinder our portfolio investors as we can, and we want them to feel completely at ease here", said Putin. He noted that this must be done "in such a manner as not to affect other market participants".

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