Changes in legislation

Legal opinions of courts concerning record on unreliability of data, on closing of bankruptcy proceedings, on name with using the word «state» come to conclusions on justification of operations of the Federal Tax Service inspections on refusal of state registration or making an entry on termination of activity. However, the Constitutional Court of the Russian Federation considered illegal the striking-off of the garage cooperative as an inactive legal entity from the Unified State Register of Legal Entities (EGRUL).

In particular,

• a conclusion on availability of arguments for refusal of state registration of the legal entity is considered correct by the court, when EGRUL contained a record on unreliability of data and reliable data wasn’t presented. It relates to the data on its management company, whose CEO acted as an applicant while registration;
• law violations were not found, while making an entry on termination of activity based on a court decision on closing of bankruptcy proceedings;
• the court determined that the name of company having the word «state», stated in the documents, presented for registration, doesn’t meet the requirements of the article 1473 of the Civil Code of Russia. This name may deceive the potential customers on content and quality of the offered services and relation of this company to government authorities.

At the same time, the Constitutional Court of Russia addressed the matters on the striking-off of the garage cooperative as an inactive legal entity from EGRUL.

The Resolution of the Constitutional Court of Russia as of 02.12.2021 №51-P declared that the inter-related provisions of paragraphs 1-4 of the article 21.1 and paragraph 7 of the article 22 of the Federal law «On State Registration of Legal Entities and Sole Entrepreneurs» do not correspond with the Constitution of Russia. According to the judicial interpretation, the mentioned regulations make it impossible to consider the specific features of this certain type of legal entity as citizen groups, intended to provide them with the possibility to use the property for the personal purposes without taking part in the civil transactions, carrying out non-profit activities and professional management of company. It happens when they are used in order to recognize garage construction co-operatives inactive and remove them from EGRUL just on the ground of such formal matters as absence of the bank account transactions and failure to present obligatory reports.

According to the Information and Analytical system Globas as of 14.12.2021, there are 335 garage construction co-operatives, in relation to which the decision about forthcoming striking-off of the inactive legal entity from the EGRUL was made. Totally, more than 4 thousand garage construction co-operatives have already been removed from EGRUL for this reason.