MB Legal law firm works with hundreds of clients in the corporate, financial, and securities markets, offering both one-time transaction services and daily services. With an individual approach and tailored solutions, MB Legal has become today a reliable partner for both local businesses and foreign investors.

In an interview with Banks.am, company partner Marine Shahparonyan spoke about the services offered by MB Legal and the formats of the work.

The shareholder agreements culture develops in Armenia

Applying to MB Legal means trusting a team of leading, experienced lawyers and receiving top-quality advice, particularly in the corporate sector. We begin our work with clients from the very first steps - from the foundation of the business, even from the business idea stage. We offer comprehensive consultations, an understanding of the business direction, and assist in obtaining the necessary permits and licenses.

The next step is to choose the corporate legal type of the business. Based on the sector selected by our client, we recommend registering the business as a limited liability company, a closed joint-stock company, an investment fund or in the case of a licensed activity, to apply the appropriate procedure. This is really very important, as the right choice helps the client avoid potential legal issues in the future.

Another stage of our work is documentation. We prepare all the necessary documents, from the foundation package to current contracts. The work also continues in the format of daily service, such as reception of employees, registration, etc. We also have many clients from abroad and assist them in obtaining entry permits to Armenia and the right of residence for employees.

From a corporate law perspective, a welcome trend has emerged - recently, there is increasing interest in shareholder agreements. These agreements allow business shareholders to distribute possible risks, engage in management issues, and legally regulate their relationships from the outset. Shareholders can conclude such agreements during both the business establishment and ongoing operations, clearly defining the duties and rights of each shareholder, as well as the measures of responsibility. It is encouraging to see this culture developing in Armenia.

As I mentioned, we often provide corporate consulting to established businesses as well. Clients come to us for corporate governance restructuring, separations, mergers, reorganizations, consolidations, and other corporate actions. It is important that we not only fulfill the client’s requests technically but also analyze and advise them on the most favorable corporate action for their business at each stage.

Many companies in Armenia attract investments from abroad which implies the entry of the investor’s funds into the given company. We perform competent documentation of this process. In such transactions, we are often approached not by the local company, but by the investor, seeking to engage an independent local legal team to study the company of interest. This process is called “Due Diligence.” We study the local company from legal and accounting perspectives, providing a detailed analysis to the potential investor. Based on the analysis, the investor makes a decision.

Financial and banking sector, investment funds, and stock market

In the financial and banking sectors, MB Legal is working in various directions. Our firm is often engaged by international institutions, such as investment funds, to act as a local expert team. Armenian banks need to attract borrowed funds from abroad and the funds providing these loans engage an independent legal team, unaffiliated with the bank, to offer an unbiased opinion about the bank. We study and analyze the complete transaction package and provide a conclusion. This is an important stage because the investors need to be sure that the signed contract will not cause problems in the future. In such transactions, we also work in the opposite direction: local banks engage us, seeking to increase their investment attractiveness.

The IT sector is one of the active areas of work of MB Legal. The IT and banking sectors often “intersect”, as we have clients from the IT sector who develop billing and financial programs and provide them to banks under license agreements. Our cooperation extends beyond the local market. In these cases, we conclude all the necessary agreements regarding the complete alienation of intellectual property rights, licenses, bank secrecy, and personal data protection.

Another aspect of our work in the financial and banking sector involves investment companies and funds. Currently, we are working with major Armenian investment companies in the local market on a daily basis. These companies offer services that require obtaining an investment license. We provide support throughout the licensing phase, which is quite a complex process that implies compliance with a number of standards set by the Central Bank of Armenia CBA.

In recent years, attracting investments through investment funds has become increasingly popular in Armenia. They enable the investor to invest assets into different funds and subsequently receive income according to the investment policies of those funds. We provide support throughout this entire process and have accumulated significant expertise in this field.

In addition to funds, we provide services in the field of investment, particularly in the public offering of securities.

An Initial Public Offering (IPO) is a strategic decision for every company. It enhances the visibility of the company and attracts investors. At the same time, it also requires implementing the regulations and requirements set by the Central Bank and the Stock Exchange, which we provide.

The range of risks is broad without a specialized team

Nearly all companies, both banks and other companies licensed in the financial market, usually engage specialized legal firms, that deal with complex transactions, in addition to the in-house team of lawyers.

In general, the involvement of an independent, specialized legal team is important for both foreign investors and the local market. Disputes often arise between the shareholders of different companies when legal relationships are not fixed and maintained from the beginning. The range of risks is broad. Companies can avoid further high costs and litigation by applying to a specialized legal team.

Yana Shakhramanyan

Photos by Emin Aristakesyan