On February 20, 2021 the Ministry of Economic Development published the Draft Federal Law "On Amendments to Federal Laws "On JSCs" and "On LLCs" with respect to legislative establishment of the possibility for business entities to insure at their own expense the property liability of members of their governing bodies and other persons" (hereinafter referred to as the "Draft Law"), aimed at more detailed regulation of property insurance of the risk of civil liability of members of management bodies of business companies, as well as other persons.
Taking into account that the Draft Law was developed in pursuance of the Action Plan for the implementation of the management mechanism of systemic changes in the regulatory and legal regulation of business activities "Transformation of the business climate" "Corporate governance, special administrative areas, bankruptcy proceedings, valuation activities", we assume that it will probably be adopted with certain modifications, in connection with which we consider it important by this review to draw your attention to its main points.
We hope that our recommendations will be useful to you.