Corporate Law Books

“A billionaire senior manager stood up and said, "We are giving this special award to Vladimir Leonidovich Bogdanov." Bogdanov, the CEO and a billionaire too, got to his feet, accepted the award, and began reading his report: We have extracted this quantity of oil. We have made that huge amount of profit. Eventually, the host of the event stood up and asked, "Are there any questions?" Three hundred fifty shareholders sitting in the auditorium remained silent. "Does anyone want to say anything?" Silence. I raised my hand and told him, "There is something I want to say." The look on the young host's face suggested a flying saucer had landed in the hall with little green men emerging from it. It was obvious that in all his working life he had never before encountered anyone who wanted to say anything. "Fine," he said eventually. "Please come forward."

I went up onto the stage and said, "There is an oil-trading company called Gunvor. It is owned by Gennadiy Timchenko, a very close friend of Putin's, and you sell your oil through it. Why was it chosen? Was there a tender? If there was, which other companies took part? How much oil do you forward to Guvnor, and what are the terms? I am demanding these explanations because at present everything suggests that the company's profit is simply accruing to Gunvor, and because of this shareholders are not receiving the dividends due them."

To judge by the expressions of those sitting on the stage, little green men not only had landed but were now firing their ray guns while tap-dancing. You could read in the eyes of those onstage that they were wondering where I had come from. "Had he been sent by the Kremlin? The FSB? How dare he publicly accuse them of corruption!"

I spoke with extreme courtesy, peppering my speech with legal terms. I followed up my question about Gunvor by demanding to be told who the real owners of Surgutneftegas were. It was widely known that as of 2003 the company had been publicly identifying only ordinary shareholders in its reports, presenting an incredibly convoluted scheme of corporate ownership from which no one on the planet could deduce who actually owned this gigantic oil enterprise.

While I was speaking, there was absolute silence in the auditorium, but as I went on, I could see people becoming animated, first of whom were the journalists. It was part of their job to sit through these incredibly dull meetings, but now, for the first time in living memory, something besides the predictable was happening and things seemed to be livening up. Next, the shareholders showed signs of life. At first they just stared at me in bafflement, trying to work out who I was, but then they realized I was just an ordinary person like the rest of them, except that I was not afraid to get up on the stage.

When I finished, the audience applauded. That was a moment to treasure, a triumph and a mind-numbing moment when I knew that now I really was battling corruption. I started attending all the shareholder meetings. Before they began, the main topic of interest to the journalists was whether Navalny was there. Everyone loved watching a battle between David and Goliath. I would put up my hand, and start speaking, and the company management would look sour because there was nothing they could do to stop me. Of course, they did not answer any questions. They could hardly say, "You're right, Alexei. We're thieves just like Putin." Their response was, "Thank you for raising such an important issue. We will look into it." Of course, nobody in the hall expected them to say anything meaningful. Far more important was the fact that someone was asking questions.”
― Alexei Navalny, Patriot: A Memoir