START-ALLIANCE LLC. PROVIDES VALUATION OF CONTRIBUTIONS TO THE CHARTER FUND IN MOSCOW AND OTHER RUSSIAN REGIONS.

According to the current Russian legislation, independent valuation of any property, contributed to the charter fund of a newly established or restructured legal entity, is obligatory. For limited liability companies, this requirement is stipulated by the Federal Law “On Limited Liability Companies”, Art. 15 “Contributions to the Charter Fund of the Company”:

If the nominal value (increase in the nominal value) of a member’s interest in the charter fund of the company, paid in the form of a non-monetary contribution, exceeds two hundred minimum wages established by the Federal Law as of the filing date of the documents for public registration of the company or relevant changes in the company’s charter, this contribution must be valued by an independent valuer. The nominal value (increase in the nominal value) of a member’s interest paid in the form of such non-monetary contribution may not exceed the value of the said contribution determined by an independent valuer”.

A similar requirement is stipulated by the Federal Law “On Joint-Stock Companies”, Art. 34 “Payment for Shares and Other Securities of the Company”:

In the event of a non-monetary payment for the shares, an independent valuer must be engaged to value the market value of assets given as payment. The monetary value of the assets accepted by the company founders and by the Board of Directors (Supervisory Board) of the company may not exceed the value determined by an independent valuer”.

The importance of an appropriate valuation of assets contributed to the company’s charter fund is explained by the fact that the reported value of fixed assets of the company will serve as the basis of property tax assessment and calculation of amortization charges. Thus, the asset valuation will directly affect the financial performance of the company.