Amendments to the Code of Administrative Offences of the Russian Federation: Prohibition of Double Liability for an Organization and Its Officer
Dear Sirs!
On 04/06/2022, changes to the Code of Administrative Offenses of the Russian Federation come into force. Here are the most important ones:
-The double liability of a legal entity and an official is limited.If previously both an organization and its director could be held accountable for committing one offense, then from 04/06/2022 the Code of Administrative Offenses of the Russian Federation prohibits holding a legal entity liable for an offense if an official has already been held accountable.Prerequisite:The legal entity must take all measures to comply with the rules and regulations. Please note that the norm does not provide for the opposite situation - there is no prohibition on holding an official liable if a legal entity has already been held liable (with rare exceptions).
-the procedure for replacing administrative punishment with a warning for NPOs and SMEs has been clarified. If previously a penalty in the form of a fine “could be replaced” with a warning, now it “subject to replacement” - in other words, the subjectivity of law enforcement agencies in this matter is excluded.
-The Code of Administrative Offenses of the Russian Federation has been supplemented with a new article 4.1.2–“Peculiarities of imposing administrative punishment in the form of an administrative fine to socially oriented non-profit organizations and legal entities classified as small and medium-sized businesses, including micro-enterprises”:the amount of the administrative fine for such persons is set at the same amount as for a person carrying out entrepreneurial activities without forming a legal entity (that is, an individual entrepreneur).
-The procedure for bringing to justice for committing several offenses provided for in one article has been clarified:if they are identified during one control event, then an administrative penalty is imposed as for the commission of one administrative offense.
We hope that the information presented will be useful for you and your business!
For additional information and clarification, you can contact our experts:
Stepanov Igor Viktorovich, managing partner, lawyer
Tel.: 8-928-229-95-96, e-mail:istepanov@gratanet.com
Makarova Inna Alekseevna, partner, lawyer
Tel.: 8-928-160-76-42, e-mail:imakarova@gratanet.com
