When structuring minority investments in Russian companies,
there are many dangers for the unwary investor. A few points
should help to identify how to distinguish between a weak and
strong structure, and how to build a structure that will
protect your rights. A fable that emphasises the importance of
this structure is The Three Little Pigs.
For those of you who are not familiar with the tale of The
Three Little Pigs, here is a brief summary. Three little pigs
build houses to protect themselves from the Big Bad Wolf. The
first builds his home out of straw because that is the easiest
thing to do. The second constructs his from sticks of wood,
believing it will be strong enough. The third puts the most
time and effort into his house, building it from bricks and
mortar. We all know how the story ends. The wolf huffs and
puffs and blows...