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Due Diligence Vs. Handshakes
http://asbarez.com/110789/due-diligence-vs-handshakes/
Friday, June 21st, 2013
David Sargsyan
BY ANUSH HOVSEPYAN
As a Diaspora Armenian living outside Armenia, how well do we know
what is actually happening in the Armenia? At a distance, we shy away
>From the unknown, often missing opportunities in our native land.
What is happening now, when our independent state of Armenia has
turned 21? Now we hear success stories of the most dynamically growing
local companies such as Ameria, SAS, in additon to foreign
telecomunications companies, such as Orange and VivaCell, making the
most of Armenia's emerging markets. Ameria Group of Companies,
co-founded by Diaspora Armenians, started with only $100,000 initial
captial investment and now has grown to more than $600 million in
assets. All that is great, but what if you are just a private investor
and you are mostly concerned with simple yet important questions,
such as: `How are business disputes resolved between a foreign
investor and an Armenian citizen? Do the contracts in Armenia have an
international arbitration clause? If so, how are they enforced?'
David Sargsyan, Director of Ameria Legal Practice and a Partner at
Ameria Group of Companies, in this interview, addresses these very
issues that every Armenian at least should be clear about.
ANUSH HOVSEPYAN: How favorable is the foreign investment law in
Armenia? Are there guarantees that foreign investments won't be seized
by government entities?
DAVID SARGSYAN: I can say for certain that laws in Armenia are of
proper quality and do provide property protection to investors. In
fact, we have one of the oldest laws among former Soviet Union
countries, adopted at the beginning of the independent Armenian State,
aimed at protecting foreign investments in Armenia. There is a clause
that protects foreign investments from negative changes in the law.
The Law on Foreign Investment adopted in 1994 provides guarantees
against nationalization and seizure of invested resources. It
specifically states: `The legal regime governing foreign investments
and the methods of their implementation in the Republic of Armenia
cannot be less favorable than the regime governing the property,
property rights and investment activities of citizens, legal entities
and unincorporated enterprises of the Republic of Armenia. Aiming to
encourage foreign investments in the essential social and economic
spheres of the Republic of Armenia, the Armenian legislation may
define supplementary privileges for foreign investors. Foreign
investments in Armenia may not be subject to Nationalization'
A.H.: How can I structure my business to be protected under English Law?
D.S.: It is essential to understand that with the help of
professionals you can structure the business under a relevant
partnership arrangement that does provide protection under English law
and through arbitration. Armenia is a party to the New York convention
and many bilateral treaties. The arbitration awards are recognized and
implemented in Armenia. Therefore, Ameria structures all of its
investment related agreements in a way that we either have ad-hoc
arbitration or we go to prominent arbitration forums outside Armenia
that are implementing relevant arbitration awards in Armenia.
A.H.: The laws may be great, but what about the rule of law and corruption?
D.S.: I am not saying that there is no corruption or nepotism in
Armenian daily life. In my opinion, all that is decreasing though,
maybe not at the desirable speed, but there is a change. We, as
advisors, provide a range of services from green field establishment
of the company all the way to ongoing legal and management advisory
services to the companies. In doing so, we see a change and progress
toward proper business environment in Armenia. If you go through World
Bank's rankings on the ease of doing business, you will see Armenia is
ranked quite high when it comes to starting or registering a business
in Armenia. Investors just need to use professionals that know the
market and have a proven track record, to mitigate the risks just like
in any other country.
A.H.: How efficient is the partnership between the Diaspora and
Armenia based on your practice?
D.S.: Ameria Group of Companies serves as an investment bridge for
investors in Armenia who would like to venture outside Armenia and for
investors in the Diaspora that would like to take advantage of
investment opportunities that exist in Armenia's emerging markets.
Ameria has a representation in Los Angeles, CA, connecting investors
to the best professionals in Armenia be it for management advisory
services, audit, accounting or legal services.
Attorney at Law David Sargsyan has more than 13 years of experience in
legal practice, specialized corporate, securities, banking and civil
law in Armenia. Ameria Legal with its 15 lawyers under David
Sargsyan's leadership provides comprehensive legal support needed for
successfully establishing, structuring and managing a business
overseas through the highest quality of representation, mitigating the
risks of running a business in Armenia and securing high return on
investments. Sargsyan has a Master of Arts in Political Science and
International Relations from AUA & LL.M. (Cum Laude) Master of Laws
International Law from Notre Dame Law School.
From: Emil Lazarian | Ararat NewsPress
http://asbarez.com/110789/due-diligence-vs-handshakes/
Friday, June 21st, 2013
David Sargsyan
BY ANUSH HOVSEPYAN
As a Diaspora Armenian living outside Armenia, how well do we know
what is actually happening in the Armenia? At a distance, we shy away
>From the unknown, often missing opportunities in our native land.
What is happening now, when our independent state of Armenia has
turned 21? Now we hear success stories of the most dynamically growing
local companies such as Ameria, SAS, in additon to foreign
telecomunications companies, such as Orange and VivaCell, making the
most of Armenia's emerging markets. Ameria Group of Companies,
co-founded by Diaspora Armenians, started with only $100,000 initial
captial investment and now has grown to more than $600 million in
assets. All that is great, but what if you are just a private investor
and you are mostly concerned with simple yet important questions,
such as: `How are business disputes resolved between a foreign
investor and an Armenian citizen? Do the contracts in Armenia have an
international arbitration clause? If so, how are they enforced?'
David Sargsyan, Director of Ameria Legal Practice and a Partner at
Ameria Group of Companies, in this interview, addresses these very
issues that every Armenian at least should be clear about.
ANUSH HOVSEPYAN: How favorable is the foreign investment law in
Armenia? Are there guarantees that foreign investments won't be seized
by government entities?
DAVID SARGSYAN: I can say for certain that laws in Armenia are of
proper quality and do provide property protection to investors. In
fact, we have one of the oldest laws among former Soviet Union
countries, adopted at the beginning of the independent Armenian State,
aimed at protecting foreign investments in Armenia. There is a clause
that protects foreign investments from negative changes in the law.
The Law on Foreign Investment adopted in 1994 provides guarantees
against nationalization and seizure of invested resources. It
specifically states: `The legal regime governing foreign investments
and the methods of their implementation in the Republic of Armenia
cannot be less favorable than the regime governing the property,
property rights and investment activities of citizens, legal entities
and unincorporated enterprises of the Republic of Armenia. Aiming to
encourage foreign investments in the essential social and economic
spheres of the Republic of Armenia, the Armenian legislation may
define supplementary privileges for foreign investors. Foreign
investments in Armenia may not be subject to Nationalization'
A.H.: How can I structure my business to be protected under English Law?
D.S.: It is essential to understand that with the help of
professionals you can structure the business under a relevant
partnership arrangement that does provide protection under English law
and through arbitration. Armenia is a party to the New York convention
and many bilateral treaties. The arbitration awards are recognized and
implemented in Armenia. Therefore, Ameria structures all of its
investment related agreements in a way that we either have ad-hoc
arbitration or we go to prominent arbitration forums outside Armenia
that are implementing relevant arbitration awards in Armenia.
A.H.: The laws may be great, but what about the rule of law and corruption?
D.S.: I am not saying that there is no corruption or nepotism in
Armenian daily life. In my opinion, all that is decreasing though,
maybe not at the desirable speed, but there is a change. We, as
advisors, provide a range of services from green field establishment
of the company all the way to ongoing legal and management advisory
services to the companies. In doing so, we see a change and progress
toward proper business environment in Armenia. If you go through World
Bank's rankings on the ease of doing business, you will see Armenia is
ranked quite high when it comes to starting or registering a business
in Armenia. Investors just need to use professionals that know the
market and have a proven track record, to mitigate the risks just like
in any other country.
A.H.: How efficient is the partnership between the Diaspora and
Armenia based on your practice?
D.S.: Ameria Group of Companies serves as an investment bridge for
investors in Armenia who would like to venture outside Armenia and for
investors in the Diaspora that would like to take advantage of
investment opportunities that exist in Armenia's emerging markets.
Ameria has a representation in Los Angeles, CA, connecting investors
to the best professionals in Armenia be it for management advisory
services, audit, accounting or legal services.
Attorney at Law David Sargsyan has more than 13 years of experience in
legal practice, specialized corporate, securities, banking and civil
law in Armenia. Ameria Legal with its 15 lawyers under David
Sargsyan's leadership provides comprehensive legal support needed for
successfully establishing, structuring and managing a business
overseas through the highest quality of representation, mitigating the
risks of running a business in Armenia and securing high return on
investments. Sargsyan has a Master of Arts in Political Science and
International Relations from AUA & LL.M. (Cum Laude) Master of Laws
International Law from Notre Dame Law School.
From: Emil Lazarian | Ararat NewsPress