Derivative Actions in the Russian Law of Commercial Procedure

The present thesis is dedicated to the analysis of issues pertaining to the legal regulation of derivative actions in the Russian law of commercial procedure. The relevance of the thesis’ topic stems from the purpose of derivative actions as a shareholders’ remedy and a means of enforcing the liability of a corporation’s governing bodies for inadequate management practices. Notably, the legal regulation regarding the procedural mechanism for the application of derivative actions was not established until the rules governing the proceedings related to corporate disputes were introduced into the Russian Commerical Procedure Code in 2009. Moreover, the existing applicable legal provisions provide an insufficient and incoherent legal framework with regard to numerous critical aspects of the present paper’s topic. In light of the aforesaid, the purpose of this thesis is to employ the analysis of the relevant legal issues as the basis for determining the prospective avenues for the development of the procedural rules regarding derivative actions with regard to the interests of corporate actors. Accordingly, the following research objectives are set: to examine the development and the legal definition of derivative actions, to analyze the relevant legal problems and to theorize on their potential solutions. The present thesis is composed of an introduction, two chapters, seven paragraphs, a conclusion and a list of references. The performed analysis leads to the following conclusions: (1) the legal definition of derivative actions is not clearly articulated, requiring further development; (2) the procedural rules regarding the adjudication of disputes initiated by derivative actions lack clarity and comprehension and thus necessitate further refinement; (3) it is necessary to establish a dedicated procedural legal framework governing the proceedings initiated by derivative actions.