1. The Ministry of Economic Development and Trade of the Russian Federation Corporate Governance Department

2. 2 Stages of the Bankruptcy Reform adoption of a new Bankruptcy Act (2002) (233 articles) adoption of a new Bankruptcy Act (2002) (233 articles) Improvement of the institution of bankruptcy Improvement of the institution of bankruptcy

3. The Bankruptcy reform 2000-2004 Sublegislative acts (the government regulations and the Ministry’s rules) 1 st STAGE The Bankruptcy act of 2002 Strategic goals: prevent repartition of estate system of self-regulation system of self-regulation balance of rights, duties and responsibility of all bankruptcy case parties balance of rights, duties and responsibility of all bankruptcy case partiesResults:

4. Bankruptcy system of the Russian Federation categories of bankruptcy proceedings Prejudicial Prejudicial  Bankruptcy prevention  additional financing  reorganization  creation and execution of rehabilitation plan Judicial Judicial  supervision  financial improvement  external management  voluntary settlement  bankruptcy proceeding (liquidation)

5. The Expert Council on Insolvency (Bankruptcy) and Financial Improvement leading experts leading experts CEOs of self-governmental organizations of arbitration managers CEOs of self-governmental organizations of arbitration managers representatives of academic institutions representatives of academic institutions representatives of public authorities representatives of public authorities At least 2 meetings per year

6. The Ministry of Economic Development and Trade The Expert Council on Insolvency (Bankruptcy) and Financial Improvement Discussing problems in bankruptcy Discussing problems in bankruptcy Presenting practice Presenting practice Discussing bills of law (regulations) Discussing bills of law (regulations) Preparing bills of law (regulations) Preparing bills of law (regulations) Public hearings Public hearings

7. 2 nd stage of the reform “ Bankruptcy Institution Development” 2 nd stage of the reform “ Bankruptcy Institution Development” Improvement of procedures of debtor’s judicial acting impugnment during bankruptcy Improvement of procedures of debtor’s judicial acting impugnment during bankruptcy Creation of effective system of private bankruptcy Creation of effective system of private bankruptcy Protection of employees’ rights in bankruptcy proceedings Protection of employees’ rights in bankruptcy proceedings Monitoring of financial condition and prevention of bankruptcy of financial institutions (not including banks). Peculiarities of financial institutions bankruptcy Monitoring of financial condition and prevention of bankruptcy of financial institutions (not including banks). Peculiarities of financial institutions bankruptcy Updating procedures of the government activities as an owner in bankruptcy Updating procedures of the government activities as an owner in bankruptcy Updating procedures of the government activities as an creditor in bankruptcy Updating procedures of the government activities as an creditor in bankruptcy

8. statistics proceduresbankruptcies 2002200320042005 bankruptcy suits 106647142771409032190 Financial improvement -102932 external management 2696208113691013 bankruptcy proceeding (liquidation) 8234117081939013963 voluntary settlement 40317015084 closed bankruptcies 44424564402011618812

9. Thank you for your attention