Konstantin Boytsov has explained to Delovoy Peterburg the specifics of disputes involving CEIFs

The Ministry of Property Relations of the Moscow Region initiated three proceedings in the Commercial Court of St Petersburg and the Leningrad Region against Svinin & Partners Management Company in order to recover payment for changing the type of permitted use of land plots. In all three cases the St Petersburg-based company acted in the interests of Novaya Zemlya, the closed-end investment fund under its trust management.

Konstantin Boytsov, Senior lAssociate and Head of Real Estate & Construction practice at Maxima Legal, explained to Delovoy Peterburg newspaper that closed-end investment funds are not a legal entities by virtue of a direct instruction of the law. “Thus, mutual funds, including closed-end ones, under Russian law cannot have rights and obligations, such as being plaintiffs and defendants in court,” the expert said.

For this reason, it will not be the closed-end investment fund but Svinyin & Partners Asset Management Company that will pay for the change in the disputes.  Konstantin stressed that “as a general rule, a separate bank account is opened in the name of the management company for each closed-end investment fund managed by the management company. Names of owners of closed-end investment funds are not indicated, the property is separated from the property of the management company of such fund and the property of the holders of investment units and is accounted by the management company on a separate balance sheet”.

To read the full article (in Russian) please visit Delovoy Peterburg website >>>