09.06.2011

“Electronic elections in bankruptcy” – conference of the Auction House of the Russian Federation in Moscow

At the Moscow branch of the Auction House of the Russian Federation, the conference “Electronic auctions in bankruptcy. The virtual becomes real. First results, problems, prospects” was held, organized by the Auction House of the Russian Federation and Kommersant Publishing House. The participants of the conference discussed the existing practice for carrying out electronic auctions of the property of bankrupts, prospects for developing legislation on insolvency (bankruptcy), possibilities of improving interaction of participants of bankruptcy procedures and bodies of state power.

 

Representatives of the Ministry of Economic Development, the Russian registry board, the Russian Union of self-regulating organizations of arbitration managers, the association of electronic trading platforms, the international news group Interfax, and also arbitration managers, organizers of auctions and specialists in the field of bankruptcy took part in the conference. The conference was devoted to summing up the first results of work, changes in legislation in the sphere of electronic auctions of bankrupt property, discussion of issues relating to the work practice of arbitration managers, organizers of auctions and operators of electronic platforms.


Opening the conference, K.V. Raev, the first deputy general director of the Auction House of the Russian Federation, discussed the importance of exchanging experience between legislators and participants of the market, and also summed up the results of the work of the Lot-online electronic platform, one of the leaders on the market.

 

K.V. Raev reminded the conference participants that the requirement of compulsory electronic auctions in realizing the property of bankrupts was from 1 October 2010 set down in the federal law “On insolvency (bankruptcy) and implementing the Decree of the Ministry of Economic Development of the Russian Federation № 54 of 15.02.2010. However, on 28 December 2010, new amendments were passed to 127-FZ “On insolvency (bankruptcy)”. The choice of selling method (classic or electronic) became voluntary, and the period of the compulsory move to electronic sales was postponed until October 2011. However, on 3 May 2011, Russian President Dmitry Medvedev signed Federal law №91-FZ, which made new amendments to the law on bankruptcy, by which all “bankrupt” property will be sold at electronic auctions from 15 May 2011, apart from property subject to realization at closed auctions (i.e. restricted and removed from circulation). This property will be sold at electronic auctions from 1 October 2011.

 

P.M. Kiselgorf (department of corporate management of the Ministry of Economic Development of the Russian Federation) summed up the results of work of electronic platforms, and discussed upcoming changes in legislation on electronic auctions of bankrupt property, primarily changes in legislation on bankruptcy. The conference participants discussed introducing liability insurance of operators in the case of technical and other malfunctions in holding auctions, and also establishing stricter demand for accrediting new electronic platforms. Another complex issue concerns the rules for stopping and resuming electronic auctions in the case of technical malfunctions.


I.B. Lipkin, the executive director of the Russian union of self-regulating organizations, discussed the practice of the work of arbitration managers of self-regulating organizations. He also noted the necessity to make changes to legislation on auctions held in the form of a public offering. At present the law does not contain an operation algorithm in a case when the winner refuses to sign a contract.

 

S. Yu. Yakovlev, the General Director of the Financial and Economic Information Service at Interfax News Group, discussed the features of work and the prospects for development of the Common Federal register of information on bankruptcy.


The representative of the State Registration Board discussed the prospect of moving to a system of electronic documentation in the sphere of state registration of rights to property, and the upcoming changes to legislation, which will make it possible to use electronic documents on an equal basis with paper documents.

 

A.V. Yukhnin, the director of the Center for problems of bankruptcy directed the audience’s attention to gaps in legislation, in particular concerning the liability of organizers and operators for the results of auctions, and also discussed problems of liability insurance.

 

S. Yu. Belonogov, the chairman of the Association of Electronic Trade Platforms, summed up the results of the work of platforms over the last period. He also discussed proposals to change legislation and defined the concept of “electronic document”.

 

A. N. Demko, the advisor of the general director of the Auction House of the Federation, directed the audience’s attention to the legal aspects of carrying out auctions, and also to legal practice on disputed issues.


To conclude the conference, as part of a practical class, IT specialists of the Auction House of the Russian Federation demonstrated the work procedure of the lot-online platform to the participants.

 

180 people from 30 regions of Russia took part in the conference.