Alina Esmanskaya has explained to Novy Prospect what could happen to the shareholding of the deceased co-owner of one of the largest agricultural producers in the North-West of Russia

Adept Group, one of the largest companies in the agro-industrial complex and meat processing industry in the North-West of Russia, has undergone a change in ownership structure. The main asset of the Group, is Novgorodsky Bacon LLC , which was co-owned by Gennady Nisanov, Vladimir Vasiliev and Andrey Titarenko with a 33.33% stake each. After Titarenko’s death in April this year, his share went into trust for Nisanov.

According to Alina Esmanskaya, Associate at Private Wealth practice at Maxima Legal, the transfer to the confidential manager does not necessarily mean that the property (in this case a share in the company) will subsequently be passed to the trustee.

“The circle of heirs is not known to us, it is determined at the end of the inheritance case, in 6 months after death. The company’s articles of association may impose restrictions on the entry into the company. Then the heirs are compensated and the share of the deceased is distributed among the other co-owners”, the expert explained to Novy Prospect online publishing.

If there are no restrictions in the charter, then the heirs become shareholders in the company. “If there are agreements between the heirs and the other shareholders of the company, the share of the heirs may be alienated in favour of the respective shareholders,” said the Associate.

Alina Esmanskaya also clarified that the powers of the asset manager may be limited by the will or the trust management agreement, “for example, to vote at general meetings in a certain way”.

To read the full article (in Russian) please visit Novy Prospect website >>>