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Judgment of the Presidium of the Supreme Commercial Court of 22 March 2012 № 12613/11 in the case Shavkat Satarov vs The company “Uralskii Priborostroitelnyi zavod” et al.

Point of law: whether the corporate law concept of “affiliation” is applicable to natural persons who formally do not engage in entrepreneurial activities?

Alternative attitudes: 1) the legislation does not envisage that a natural person not conducting entrepreneurial activity might have affiliated persons; 2) the finding of affiliation requires having the status of individual entrepreneur or engagement in entrepreneurial activities from neither natural persons with respect to which the affiliation of other persons is being determined nor from the supposedly affiliated persons themselves.

Ratio decidendi: the second view is legally correct.

Practical consequences: the Judgment says that prior court decisions in analogous cases if inconsistent with this interpretation may be reversed in the procedure and within the limits envisaged by Art 311 of the Commercial Procedure Code.

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