How to Determine a Major Transaction in 5 Minutes: Service for Businesses

What Qualifies as a Major Transaction?

Under Russian law, a transaction is considered "major" if:

  1. Property value (price or book value) equals ≥25% of the company’s assets.

  2. Transfer of rights to intellectual property or temporary use of assets reaches ≥25% of the company’s asset book value.

Example:
Company assets: 100 million RUB.
Transaction involving property worth ≥25 million RUB → classified as major.


How to Calculate Asset Book Value

  • Standard method: Data from the annual financial statements as of December 31 of the previous year.

  • Exception: If interim financial statements (quarterly/monthly) are prepared, the latest approved version is used.


Who Must Approve the Transaction?

Depends on the company’s legal structure and charter:

  • LLC (ООО): General meeting of participants or board of directors (if specified in the charter).

  • JSC (АО): Board of directors or general meeting of shareholders.

Risk: Unapproved transactions may be invalidated by a court.


How the Verification Service Works

  1. Input data:

    • Transaction amount

    • Company’s asset book value

    • Legal structure (LLC, JSC, etc.)

  2. Analysis:

    • Calculates the transaction’s share of total assets

    • Checks legal criteria for "major" status

  3. Result:

    • Determines if the transaction is major

    • Specifies the approving authority

[Check Your Transaction] (link)


5 Reasons to Use the Service

✅ Speed – Results in 2 minutes vs. manual calculations
✅ Accuracy – Algorithm accounts for all legal nuances
✅ Risk prevention – Eliminates approval errors
✅ Adaptability – Works for LLCs, JSCs, and PJSCs
 


Case Study

A construction company planned to purchase equipment worth 30 million RUB (assets: 110 million RUB).
Service Result:

  • Transaction share: 27.3% → classified as major

  • Required approval: General meeting of participants

Outcome: Transaction approved, litigation risks avoided.