Law stated as at 19 Jan 2011 • England, Russian Federation, Wales |
English law | Russian law |
A put option is a right or option conferred on one party to require another to compulsorily purchase an asset (for example, shares) under the terms of a pre-agreed contract. The put option agreement contains all the terms of the option. For example:
For further information, see Standard document, Put option agreement and its accompanying drafting note. | Put options are not recognised. The law is currently incompatible with a key commercial element of any put option, namely that only one party (the holder) can decide whether to trigger its options to "put". Conditional sale and purchase agreements are recognised. However, this is a two-way obligation, which means that once the conditions are satisfied, both parties must complete the sale and purchase. |
English law | Russian law |
A call option is the right for one party to require another party to sell its shares for a pre-determined price. The call option agreement may provide that if the grantor refuses to transfer the shares, the call option holder has an irrevocable power to both:
For further information see Standard document, Call option agreement and its accompanying drafting note. | Call options are not recognised. The law is currently incompatible with a key commercial element of any call option, namely that only one party (the holder) can decide whether to trigger its options to "call". Conditional sale and purchase agreements are recognised. However, this is a two-way obligation, which means that once the conditions are satisfied, both parties must complete the sale and purchase. |
English law | Russian law |
A power of attorney is a document by which one person gives another person the power to act on his behalf and in his name. For further information see Standard document, Power of attorney and its accompanying drafting note. | Powers of attorney are recognised, but they cannot be irrevocable and can be cancelled by the grantor at any time. The appointed attorney would also owe duties to the grantor of the power of attorney which are likely to conflict with the attorney's use of its powers to force through a sale against the wishes of the grantor. |