Medt forecasts increased numbers of corporate mergers

The Russian Ministry of Economic Development and Trade forecasts increased numbers of corporate mergers, said Andrei Sharonov, deputy minister of economic development and trade, at the conference on corporate policies in Russian business on Tuesday.

"The current developments let us forecast the increase in corporate mergers. Therefore, our task is to restrict the numbers of unfriendly mergers," said Mr. Sharonov.

In his opinion, it will require enhanced corporate management and court practice in Russia. The activity of the state as a creditor in bankruptcy cases should be made more transparent along with development of pre-trial dispute settlement, believes the deputy minister.

A respective proposal on amending the bankruptcy law and the Criminal Code has been prepared, said Mr. Sharonov.

"We have established a quite effective legislation, but a more complicated problem lies in the law enforcement sphere," the deputy minister pointed out. Hence, the judicial and law enforcement systems should be reformed, he added.

According to Mr. Sharonov, international rating agencies explain that a company's rating is in many ways dependent on corporate management and business culture.

"Together we are responsible for our country's rating," said the deputy minister addressing the businessmen. In his opinion, the main tasks of the state are to develop clear-cut business rules, pull down the administrative barriers and protect the property rights.

At the same time, according to Mr. Sharonov, the Russian Ministry of Economic Development and Trade stands for introduction of stricter requirements in terms of information disclosure for state-owned companies, public companies and banks.

"We have to introduce stricter requirements in terms of information disclosure for public companies, financial institutions and state-owned-companies," said the deputy minister of economic development and trade speaking at thenational congress "Business accounting and reporting reform in the Russian Federation".

There are a lot of joint stock companies in the country, the deputy minister pointed out.

"The joint stock companies have to face the option either to disclose information in compliance with the public companies standards or change the business organization," believes Mr. Sharonov.