The law substantially restricting foreign control over the media has been signed by the Russian President and published
Previously, foreign entities could possess on the right of ownership up to half of any media asset in Russia. Under that law foreign ownership of media assets would be limited up to 20%. The new law also foresees that foreign citizens, stateless individuals and Russian dual citizens may not be founders of the media, The made amendments would affect 30 media entities presently operating in Russia, including Forbes and Russian business dailies Kommersant and Vedomosti.
If the above requirements are not observed the law foresees the following consequences: - the participants in media founders are not entitled to exercise a number of the rights of the company participants, particularly, to receive information about the activities of the company, review its documents, challenge resolutions passed by company management bodies, claim indemnification, challenge concluded transactions on behalf of the company or demand that the consequences of their invalidity be applied; - the votes of such persons are not taken into account in establishing a quorum at a General Meeting of participants; - transactions resulting in violation of the given requirements are deemed to be null and void; - media activities may be suspended by court ruling by application of the Russian federal media registration authority.
All materials are protected by copyright of TV&P. If you need further information on the subject, contact Kristoffer Svendsen.