ИСТИНА

First, it will make it possible to redistribute assets, that is to withdraw excess and surplus inefficiently used property and vest subsidiaries and affiliates with the resources required. Second, the form of incorporation of such subsidiaries and affiliates may vary (OAO, ZAO or OOO) thus creating an additional tool for efficient management of the property complex of the integrated business entity. It is easier for the integrated business entity to secure control over a closed joint stock company or limited liability company than over an open joint stock company. Third, the aforesaid forms of incorporation are better protected against investment expan-sion of competitors. It is also difficult to “outbid” control over a closed joint stock company or limited liability company due to the pre-emption right of shareholders/members of such compa-nies to shares/interests alienated to third parties. Fourth, it becomes possible to establish subsidiaries with attraction of private funds. In this case, article 105 of the Russian Federation Civil Code provides for fixing the “status” of a subsidiary both by virtue of the majority held by a legal entity in its authorised capital and by way of entering into appropriate contract between the legal entities. Therefore, there is a possibil-ity for the integrated business entity to establish control over a future or existing legal entity without any financial investments.