Legal Risks of the Lack of Permission of the Government Commission and Non-Compliance with the Terms and Conditions Stipulated by It for Transactions with Shares and Participatory Interests in the Authorized Capital of a Business Entity

The absence of permission from the Government Commission for Control of Foreign Investments in the Russian Federation to carry out (execute) transactions (operations) with shares in the authorized capital of business companies and failure to comply with the conditions contained in such permission may entail a number of legal risks for the parties to such transactions (operations). Likewise, failure by the parties to comply with the terms contained therein can potentially lead to negative consequences. Based on existing and emerging judicial practice, the author draws a conclusion about the possible nullity of the transaction in case of non-compliance with the conditions of the permission of the Government Commission on the basis of clause 2 of Article 168 of the Civil Code of the Russian Federation and applied by analogy to clause 56 of the Resolution of the Plenum of the Supreme Court of the Russian Federation dated June 23, 2015 No. 25 ʻOn the application by courts of certain provisions of Section I of Part One of the Civil Code of the Russian Federationʼ.