Under the current external sanctions imposed by a number of states against the Russian Federation, which block the payment of dividends to foreign shareholders and complicate the alienation of their shares, a significant number of Russian companies with foreign investment or foreign companies with Russian beneficial owners have been left “abandoned” in foreign jurisdictions. Ceasing to manage a foreign company in the hope that it will “dissolve itself” is a dangerous misconception. An abandoned yet legally existing company is not a “dormant asset” but a ticking time bomb for its owner.
In this article, we’ll cover the following topics: foreign companies in the context of the CFC (Controlled Foreign Company) Law, risks for “abandoned” companies in foreign jurisdictions, and the specifics of business liquidation in the United Kingdom, France, and Germany.
