Protecting a Large Construction Company Owners’ Interests and Return of RUB 84 million of Assets

The law firm’s lawyers defended the interests of the construction company’s owners in the corporate conflict, with the assignment agreements thus invalidated and the right to return the receivables to the company acknowledged.

The former General Director, who is a co-founder, made a number of transactions for the assignment of receivables as part of the corporate conflict in a large construction company. The law firm’s lawyers succeeded in putting a stop to the legal succession issue, annulling the assignment agreements and returning the company’s owners a significant asset worth RUB 84 million.

The construction company’s property asset, i.e. the accounts receivable confirmed by the court decisions that have come into force, in excess of RUB 84 million, was assigned by the General Director (and the company’s founder) to a third party.

Although the director’s actions prior to his dismissal were formally lawful, the law firm’s lawyers succeeded in proving that the deal had been made with obvious damage to the company and in suspending the proceedings on the basis of assignment agreements in succession cases.

The assignment agreements were challenged in three separate proceedings with reference to Article 174, Para. 2 of the Civil Code of the Russian Federation as transactions detrimental to the company’s interests that the other party knew or should have known about. The court found the mere conclusion on unfavorable terms of an assignment agreement to be a circumstance indicating that the other party was aware of the transaction’s loss-making nature.

The right to recover receivable accounts was granted to the company due to the legal protection strategy developed by Osip Rumyantsev, the law firm’s Managing Partner, and the law firm’s lawyers team.