Russian business law: the essentials. Отсутствует

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was reorganized in 1931.

      The revival of teaching business law related to a decree of the Communist Party, dated 1964.[12] The first textbook on business law was developed by a group of authors, supervised by a doctor of legal sciences, Professor V. V. Laptev in 1967.

      The final concept of business law was developed by a group of authors from MSU and the Sverdlovsk law institute, supervised by V. P. Gribanov and O. A. Krasavchikov. According to that concept, the business legislation could be recognized as an integrated and complex formation, where norms of different branches of socialist law interacted with regulation of different areas of business activity.

      The modern period of business law started after the establishment of the business law and foreign trade regulation department of MSU in 1989, and was later renamed into the business law department in 1992, and headed by Professor A. G. Bykov.[13] After the fall of the USSR and at the beginning of new economy system formation, it was vitally necessary to study business law as a separate branch of law that would regulate legal relationship in a new free market environment.

      Currently, the development of Russian business law is led by the MSU Business Law Department with Professor Ev. Gubin, one of the authors of this book, as its Chairman.

      4. Entrepreneurship as a Legal Concept, and Business Law Principles

      Another important thing to understand regarding specific rules of business law, is the legal approach towards entrepreneurship, along with business law principles.

      In the Russian legislation, entrepreneurship is defined as an independent activity, aimed at regular receipt of profit from use of property, product sale, implementation of works, or service delivery carried out at their own risk by persons registered according to the laws (article 2.1 of the Civil Code of the RF). Thus, any activity can be declared entrepreneurship if it has the aforementioned features, in other words, (1) independence, 2) risk character; 3) focus on regular receipt of profit. Although it is not directly indicated in a given definition of entrepreneurship, the word «activity» itself indicates it must be a continuous, regular, not a single act, and be carried out for a more or less a certain time period.

      The principles of business law form the basis for being a separate area of law, and determine its unity. The principles of the market economy underlie business law principles, as market relations are the subject of business regulation.

      The following principles of business law are usually mentioned by legal scholars,[14] inter alia: (1) freedom of entrepreneurship, (2) variety and equality of ownership forms, (3) economic space integrity, (4) competition and limitation of monopolistic activity, and (5) state business regulation. These and other principles of business law are explained further in this book.

      The principle of entrepreneurship freedom is enshrined by Article 34 of the Constitution of the RF, establishing that “each person has the right to freely use his abilities and property in order to carry out business and other economic activity not prohibited by a law.” The same article of the Constitution bans economic activity aimed at monopolization and unfair competition.

      Another important principle relates to state regulation of economy and entrepreneurship. For example, article 71 of the Constitution of the RF includes the following spheres into the jurisdiction of the Russian Federation, inter alia:

      (1) federal policies and programs in the area of state, economic, ecological, social, cultural and national development of the Russian Federation;

      (2) legal framework of a single market; financial, foreign exchange, credit, and customs regulation, monetization, pricing policy; federal economic services, including federal banks;

      (3) federal budget; federal taxes duties; federal funds of regional development;

      (4) federal property and its management.

      The principle of state regulation is enshrined not only in the Constitution of RF, but also in the constitutions or charters of the Russian Federation constituent territories, federal and local laws, and other legal acts.

      Finally, the integrity of the economic space is another core principle of market economy and business law. In accordance with articles 8 and 74 of the Constitution of the RF, the integrity of economic space, free movement of goods, services and financial resources, support for competition, and the freedom of economic activity are guaranteed in the Russian Federation.

      Now, our reader has the necessary background. Let your journey to the Russian business law begin! We hope you will enjoy it.

      Evgeny Arkhipov[15]

      Chapter 1 – Business Legislation

      1. Business Legislation

      Russia belongs to the Continental (Roman-German) legal family. Statutes (laws) are the main source of law.

      1.1. The Hierarchy of Legal Acts Regulating Entrepreneurial Activities

      The system of legislation of the Russian Federation consists of three levels: federal, regional (at the level of subjects of the Federation), and local (at the level of municipal entities). At the top of the pyramid of normative acts is the Constitution of the Russian Federation. Moreover, the Russian Federation is a party to several binding international treaties.

      The Constitution of Russia sets the areas of competence and powers of the federal and regional governmental bodies in its Articles 71–73. Article 71 of the Russian Constitution lists the procedures by which legal acts can be adopted, solely at the federal level. Article 72 of the Constitution describes the areas in which the regulation can be carried out by both regional and federal acts. Meanwhile, the acts of the regional authorities on such matters shall comply with the acts of the federal authorities. The regional authorities “have full power” on matters not listed in the aforementioned two articles (Article 73 of the Russian Constitution).

      Currently, no law on normative legal acts has been adopted in Russia, which is common in several countries. Therefore, the legislative system is not fixed in any act in a complete form. However, separate norms establishing the hierarchy of acts are still available in various sources. With regard to such norms, as well as provisions of the jurisprudence, the schematic system of the normative legal acts in Russia can be explained in the following chart.

      An act with a lower legal force should not contradict an act with a higher legal force. If such a contradiction arises, the act with a higher legal force shall be applied.[16]

      1.2. Requisites of Legal acts

      In order to be able to precisely identify a specific legal act, the legal acts shall have the following requisites:[17]

      i) The type of a legal act

      Main types of legal acts: a federal law, a decree, a decision, an order, a command, an instruction, an informative letter.

      ii) Adopting body

      An adopting body for federal constitutional laws and federal laws is not specified; only the Parliament of the Russian Federation can adopt these acts. Similarly, an adopting body for regional laws is not specified.

      iii) The name

      Legal acts do not have official abbreviations in Russia. At the same time, in practice the acts that are widely used acquire informal short names. The short names can appear as abbreviations (for example, FL on Joint Stock Companies is called “FL on JSC”).

      iv) The date of adoption

      The date of adoption of the federal law is the date of the adoption of the law by the State Duma.

      v) The number

      Sometimes federal laws are simply named by number, for example "law No. 99-FL". However, this method of naming the law does not allow accurate identification

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