Category "Effective Control" In The Civil Law Of The Russian Federation

Authors

  • Anastasiia Nikolaevna Artemova

Abstract

Recently, the number of abuses associated with the use of the corporation's structure for illegal purposes has been growing (for the evasion of the law, avoidance of obligations, fraud against creditors). A prerequisite for such use is the presence of control over the corporation, the essence of which is the ability to determine the actions of the corporation, in other words, to shape its will. In the article, the author attempts to comprehensively analyze the category of "effective control". The author investigated the Russian legislation in order to consolidate the category of “effective control” in it, analyzed the judicial practice concerning relations involving persons who actually control the corporation. The analysis of judicial practice made it possible to identify the main categories of persons controlling a corporation, the grounds for establishing control over the corporation, as well as the legal consequences of establishing effective control over the corporation. As a result of the study, it was found that when using the structure of a corporation for unlawful purposes, the persons who actually control the corporation, avoiding entering into legal relations with the corporation, nevertheless, are in fact in control relations with it. The court, on the basis of the evidence presented, recognizes the person as actually controlling the corporation. Establishing relations of effective control, the court gives legal formalization to such relations.

Published

2020-11-01

Issue

Section

Articles