Penalty for non-monetary obligations only

A draft bill containing amendments to the Civil Code provisions on penalties has been introduced to the State Duma.(1) The establishment of different kinds of liability for violations of monetary and non-monetary obligations has been proposed, whereby a penalty will be imposed only for the violation of non-monetary obligations. For the violation of monetary obligations, only accruals of interest under Article 395 of the Civil Code will be provided for. In order to distinguish between the two types of obligation, the proposal defines a 'monetary obligation' as an obligation of the debtor to pay to the creditor a certain amount of money based on a civil law transaction or other lawful grounds. The proposed amendments are intended to avoid double liability.

Reduction of state registration term

A bill that proposes to reduce the timeframe for state registration of legal entities and individual entrepreneurs has been introduced to the State Duma.(2) According to the draft bill, a single period of three working days will be set for registration of a legal entity (or person as an individual entrepreneur). In comparison, state registration presently takes five working days.

For further information on this topic please contact Anna Fufurina or Alexander Titov at Noerr by telephone (+7 495 799 56 96) or email (anna.fufurina@noerr.com or alexander.titov@noerr.com). The Noerr website can be accessed at www.noerr.com.

Endnotes

(1) Available in Russian at http://asozd2.duma.gov.ru/main.nsf/%28SpravkaNew%29?OpenAgent&RN=796189-6&02.

(2) Available in Russian at http://asozd2.duma.gov.ru/main.nsf/(Spravka)?OpenAgent&RN=776910-6.

This article was first published by the International Law Office, a premium online legal update service for major companies and law firms worldwide. Register for a free subscription.