The owner of control package of shares of a major construction company located in Saint-Petersburg agreed to sell its package to one of the key players of the construction market.
Within the course of the transaction, a number of principal agreements were reached between the parties of the transaction, which were to be reflected in the sale and purchase agreement, were mandatory for further execution by the parties and had a possibility of being secured by the courts of laws. A condition that the general director of the company as well as the key managers would keep their positions in the company within certain years upon the closure of the transaction, as well as a condition on banning them from work in competing companies of the economic sector within the next 5 years following their dismissal were among such conditions.
The seller addressed PRESIDENT CONSULT with a request for legal assistance.
Since the pertinent Russian legislation did not permit guaranteeing the fulfillment of conditions necessary for the parties, we advised them to take certain measures that would entail them to have these agreements governed by the English law. There was a decision taken on acquisition of the shares of the company by a certain company registered in an appropriate jurisdiction. The lawyers of PRESIDENT CONSULT, who are qualified in the field of English Law, have re-structured the main basic terms and conditions of the transaction and drafted the agreement. At the final stage of drafting, a reputable English law firm was engaged for the purpose of bringing the agreement in compliance. The representatives of the English law firm have made some insignificant adjustments into the drafted documents. The transaction was successfully concluded and fulfilled by the parties in strict compliance with the terms and conditions of the agreement.