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Corporate Law
The Tandem of Demand and Supply


The development of legal rules was and continues to be one of the central problems in post-soviet countries which have introduced elements of market economy without adequate legal foundations and traditions. Reformers of early 1990s and their foreign advisors counted on the assumption that economic reforms and the supply of law would be self-fulfilling and as a result of the widening of the social basis of reforms would generate demand for law from economic agents themselves.
However, soon it became evident that this logic was not flawless: basic laws were adopted and there was private property and private entrepreneurship, yet there was no or little change on the demand side. Scholars point to several possible reasons of this phenomenon: the legacy of Soviet legal culture with its lack of reliance on law and courts for dispute resolution; legal reforms which do not take into consideration the hands-on experience of the business; shortcomings of the legal system; and actual unequal protection offered by law. Under these circumstances, instead of law, the Armenian business prefers to rely on informal mechanisms for the regulation of their relationships.
Armenian corporate legislation is one of the striking examples of low demand for law. The basic legal rules regulating corporate relationships are in force for a long time; however, several of their provisions have not been used in practice yet. As an evidence of low demand for corporate legislation one can recall to the small number of court cases in this sector (only 11 lawsuits during 2009), and to the rare amendments of the laws.
Particularly, the Laws of the Republic of Armenia on Joint-Stock Companies and on Limited Liability Companies are both based on the approaches of the corresponding Russian laws. The initial editions of laws in this sector in both countries were very similar in their content. However, while in Russia after the adoption of corporate laws several significant amendments have taken place, the above mentioned laws of Armenia are acting almost in their initial edition (several small amendments have been made during the recent years, e.g. the requirements to the charter capital and keeping the register of the shareholders of joint-stock companies have been amended, as well as the contractual freedom on the matters related with the minimum required number of shares for making decisions on the general meeting of shareholders has been widened). The reason of such situation is clear: the drawbacks of laws are invisible if they are not used, or they are visible for a small group who even may benefit as a result of these drawbacks.
Scholars assess the effectiveness of corporate law by its ability to innovate and develop. The more innovative and adaptable a legal system is, the more likely it is able to respond to a changing environment and thereby give firms the possibility to explore new opportunities while ensuring a minimum level of investor protection. Otherwise, the law either hinders development, or creates conditions for opportunistic behavior and for the violations of the rights and interests of different groups.
The experience of Armenia and other post-soviet countries shows that the low demand for law significantly limits the ability of law to innovate and leaves the room only for top-down action by public authorities without the participation of and interest from the market forces.
This, in its turn, negatively affects the effectiveness of legal reforms, as very often these reforms are based on the foreign experience and do not pay enough attention to the adaptation of the new rules to the local requirements and institutional environment.
Currently there is a paradoxical situation in the field of corporate law, as legal rules (or the state) are well ahead of the practice, and the adoption of these rules or their amendments are not required by the market forces. Under such circumstances the state, theoretically, can define the main basic rules and wait until the demand from companies and investors will appear. Outside the basic rules the content of the provisions of laws actually is not important, as they are not used. Therefore, currently the state should concentrate on the application of acting laws in order to create demand for law. This demand will itself promote further reforms.
Suren Gomtsian,
candidate of legal sciences, Armenian State University of Economics,
Concern-Dialog Law Firm




Electronic ankle bracelets as an alternative
A civilized response to the economic crimes.

During the last session the Government of RA approved the package of legislative initiatives aimed to increase the efficiency of criminal justice and to improve the acting criminal system which will be presented to the National Assembly. Some of the proposed amendments are related with the legal regulation of problems in the area of economic crimes. "Capital" daily newspaper has had an interview with Attorney Sedrak Asatryan, the managing partner of Concern-Dialog law firm on some issues concerning the economic crimes.
-Mr. Asatryan, during your last interview to "Capital" daily newspaper you said that the RA Code of Criminal Procedure pertaining to the economic crimes does not correspond to the spirit and logic of market reforms in Armenia. What did you mean?
-The Code of Criminal Procedure needs to be wholly changed, anyhow the concept is developed and I consider it necessary to note that the concept is quite progressive and it considers the implementation of new institutions. My colleagues are against some innovations, but I would not like to express any thoughts on this issue, as I do not have enough experience in this area. Perhaps they are right. I would like to touch upon two important issues included in the content of this concept, which are not going to be changed in the new Code of Criminal Procedure, that is the regulation of the application of the precautionary measure as detention in case of economic crimes and the issue of the necessary suspension of criminal cases commenced on the basis of administrative acts if these acts are disputed.
-In your opinion what is the necessity of suspending the criminal case on the base of challenging the administrative act?
-Along the years the international organizations make reports on the necessity of toughening the administration in the tax and customs spheres. The Government has accepted the presence of such problem and has undertaken steps for solving it, but to the extent of my awareness on the undertaken programs unfortunately they will not give good results.
-Why are you so pessimistic?
-There is no problem of pessimism, however, the issue of administration will not be solved by developing new procedures for the separate spheres of administration as the RA law on "The Foundations of Administration and Administrative Proceedings" is in force, and this law regulates the administration in Armenia according to the European rules and even more (I mean article 48 of the law, which does not exist even in the German Administrative Code). Therefore, there is no need for writing new procedures. I think in case of real willingness of reducing the corruption risks they are clearly visible. In order to substantiate my words, I will bring a hypothetical example: An inspector with good fantasy can determine based on inventory and measurement data or the information received from a third party that the taxpayer has not calculated and presented the report correctly and can "paint" an amount in the inspection act according to article 22 of the Law on Taxes. This act can become a base for the tax intelligence authority to initiate a case as a result of intentional tax evasion. On the base of the "painted" administrative act the inspector can initiate a prosecution or can require a bribe from the head of the company under the threat of prosecution. Being in such condition the director will agree to give a bribe for different reasons (from negligence up to having unscrupulous professionals).
-Why do you think that giving a bribe has not an alternative in that case?
-I think so because otherwise if the director dares to appeal the administrative act to the superior authority or court, a criminal case can be brought and while the director tries to challenge the legality of the administrative act in the court and waits for the final court decision, he will be in prison within the framework of the criminal case.
-What kind of solution would you suggest?
-I would like to suggest defining a new institute of the suspension of criminal case in the Armenian Code of Criminal Procedure, that is, the proceeding of the criminal case initiated on the base of the administrative act shall be suspended by the solicitation of complaint brought by a party against the administrative act until the final decision on the legality of the administrative act is made.
-Do you think the problem will be solved in this way?
-I am not sure my suggestion is the best. The abuse of right of the opposite party can work here but I am sure if the authorities show their willingness and estimate this problem in the list of corruption risks, we can find a formulation with flexible happy medium.
-During the last Government session a draft was proposed for the amendments in the Criminal Code which supposes to free the person from criminal responsibility who has committed an economic crime in case the latter pays the caused losses and the calculated fines and penalties. Isn’t this draft a solution to the above mentioned issue?
-I am glad that the Government accepts the existence of this problem but unfortunately this draft is a situational patch to the Criminal Code. It is said in the draft that the person who has performed actions by the appropriate articles is exempt from criminal liability if he pays the losses, etc, and what if the person has not performed such actions and challenges the administrative act. Besides, it is not clear from this draft what kind of problem the Government wants to solve. If there is need to make non-criminal (the articles mentioned by the 5th part of the article 189, I think they should get another formulation and appropriate amendments should be done in the Code on Administrative violations.
-What do you mean by saying regulation of the problem on applying the precautionary measure as an arrest?
-In my opinion the use of alternative modes for precautionary measures, especially in case of economic crimes, is a necessity. According to Kommersant (Russian daily), the world experience shows that during the last ten years the electronic ankle bracelet is actively used in more than 60 countries in the world as an alternative precautionary measure. Moreover, the electronic ankle bracelet is applied in different countries instead of house arrest, free exile or administrative detention. For example, the electronic ankle bracelet has been applied in Sweden for small crimes for 6 years. The electronic ankle bracelet is also applied in Germany, Israel, in the 48 states of USA, Russia started to study it in 2001 and has performed an appropriate amendment in 2010, but they do not use it widely yet. Russias tardiness perhaps is understandable taking into account the countrys endless area, though its at least a year that the precautionary measure is applied as a loan in Russia in case of economic crimes. Georgia has gone ahead in this issue as well. The electronic ankle bracelet is widely applied there too. Our Government has announced the IT sphere as a priority branch of economy since 2001. I think it is worth thinking about completing this sphere with modern technologies too.
- And what is the electronic ankle bracelet?
- The electronic ankle bracelet is a device like a modern watch which is attached to the person’s hand or leg and sends a call to the computer of the authority performing the monitoring through a GPS or any other systems, which allows controlling the subjects steps. I would not like to touch upon the peculiarities of the device as it is well known to the specialists.
-Isnt this device too expensive for our country?
-I can not give you an answer with certain figures, but if we compare these expenses with the amount of taxpayer money spent on prisoners, in my opinion it will be cheaper except the onetime costs related to the creation of initial system.
-You mention that especially in case of economic crimes the arrest is not justified to apply as a preventive measure. How will you explain this?
-The lawmaker has defined the necessity of applying arrest as a precautionary measure for avoiding two situations; these are to hide from the body which carries out criminal proceedings and possible actions of concealment and falsification of materials relevant to the case in the pre-trial process of investigation or court proceedings (Article 153 of the RA Criminal Code). In case of economic crimes the evidence having importance in the case is, as a rule, in written form, and is being seized by the investigative body until making decision for the preventive measure. The arrest does not solve the problem related to the prevention of the case investigation, as if needed the prisoner can impede the investigation from prison. Therefore, only the problem of hiding from the body carrying out criminal proceedings stays unsolved, which, as it is seen from the experience of 60 countries of the world, can be solved by the electronic ankle bracelet.

Article by Armenak Chatinyan
Capital daily newspaper
Non-official translation by Liana Kamalyan



New Partnership Born as a Result of the Exchange

Community Connections alumni Sedrak Asatryan and Ovsanna Stepanyan signed a partnership agreement between their law firms to enhance their clientele base and offer them needs-based specialized service. From now on, customers applying to "Concern Dialog" CJSC with customs related issues will be referred to "JIT Express" LLC, and vise versa, those applying to "JIT Express" LLC for legal counseling services on comprehensive/corporate or investment issues will be referred to "Concern Dialog" CJSC.
Sedrak Asatryan, the General Director of "Concern Dialog" CJSC highly appreciates his participation in the USAID funded Community Connections program “"ndependent Practice by Emerging Legal Professionals", which took place in July, 2010, Cincinnati, Ohio. When applying for the program, Asatryan was familiar with the American legal system and had clear understanding of his professional needs from the exchange program in the US. Along with partnership issues, he was interested in marketing and building relationship with clientele. It could never come to his mind that some day his dream would come true and he will have a chance to see all this with his own eyes.

Asatryan highly valued the work done by Charles F. Hollis, principal attorney at Benjamin, Yocum & Heather LLC, who acted as the action planning facilitator in the course of the program. Thanks to him, he gained profound knowledge in partnership issues and unfolded his ideas on potential partnership between two law firms participating in that exchange program. In addition to this, visits to the law firms Graydon Head and DBL Law reinforced the theoretical knowledge gained at the action planning sessions.

Already in Armenia, Ovsanna Stepanyan, the young director of "JIT Express" LLC and participant of the same group, supported Asatryan’s ideas in signing an agreement between their two firms by acknowledging the mutual benefits of that initiative. Now, when both they were equipped with new ideas and knowledge they could easily bring that into life. The first step is already done: partnership agreement signed which has put the basis for the future fruitful cooperation between the two law firms which, in its turn, will lead to increased scope of customer service and customer satisfaction.

"I always had the idea of partnership in my mind. What I lacked was confidence and exposure to others’ experience. I was able to feed these gaps through participation in this program which gave me a vital exposure to the US legal system and proved the benefits of partnership", mentioned Asatryan.

Published 08.10. 2010
Source: http://www.ph-int.org/success_story/pr71/186/




USAID program offers exposure to legal practice in Cincinnati

CINCINNATI - Cincinnati law firms and courts have worked with 10 Armenian lawyers completing a three-week Community Connections program. The USAID-funded program was designed to expose the Armenians to how American law firms operate in the context of the American legal system and to foster linkages between the Armenian lawyers and their American counterparts.

The Armenian lawyers visited five local law firms as well as courts on the county, state and federal levels. They also visited the Cincinnati Bar Association and the University of Cincinnati School of Law and its Urban Morgan Institute for Human Rights. In Ohio's capital, Columbus, they visited the Ohio State Bar Association and the Ohio Supreme Court.

Making Armenian connections, the group met with Cincinnati businessperson and former Congressional candidate David Krikorian and enjoyed hospitality at the home of Samvel and Sofik Mnatsakanian in Cincinnati and Tigran Safaryan in Columbus. The visiting lawyers stayed in Cincinnati homes and treated their home hosts to a genuine Armenian barbecue.

The topic of this Community Connections program was Independent Private Practice by Emerging Legal Professionals. The 10 lawyers in this Community Connections program work either in new law firms or in Armenia's new public defender system. With international help, Armenia is transitioning to a more democratic legal system and independent judiciary.

During the 3-week program, the group covered topics such as law firm organization and practices, technology, ethics and the role of the judiciary.

"The Armenian lawyers are intensely interested in every aspect of their counterparts' professional lives, from the nuts and bolts of running a law office to the principles and ethics of a democratic legal system," says Jan Sherbin, managing this Community Connections program for the Greater Cincinnati World Affairs Council. "We are showing them ideas they can implement immediately and also ideas they can work toward over the years."

The program is funded by USAID, with World Learning as the programming agent. As the local training organization, the World Affairs Council is designing and conducting the program, its 45th.

The broad public diplomacy goals of Community Connections are to contribute to economic and democratic reform and to promote mutual understanding in Eurasia, providing visitors broad exposure to U.S. society, helping create personal connections with Americans and advancing democratic and free-market principles in a region where these principles are still tenuous.

Community Connections participants:

Mr. Arayik Papikyan
Mr. Armen Baghdasaryan
Ms. Arpine Melikbekyan
Mr. Babken Sahradyan
Ms. Inessa Petrosyan
Mr. Karapet Aghajanyan
Mr. Karen Manucharyan
Ms. Marine Ghandilyan
Ms. Ovsanna Stepanyan
Mr. Sedrak Asatryan

17 August, 2010
Source: http://www.reporter.am/index.cfm?objectid=D271C503-A9CF-11DF-98620003FF3452C2




AAA Participates in Cincinnati Program for Armenian Lawyers

The American Arbitration Association recently participated in a program hosted by a Cincinnati organization that introduced a group of Armenian lawyers to the workings of the American legal system.

Vice President James Noll of the AAA's Labor, Employment, and Elections Division briefed 10 Armenian lawyers on the basics of alternative dispute resolution processes and the role of the American Arbitration Association as an ADR-services provider in a presentation on July 15. The group is visiting the United States this month as part of the Community Connections Program, sponsored by the U.S. Agency for International Development (USAID) and hosted by the Greater Cincinnati World Affairs Council.
Noll (shown standing with an interpreter during the presentation) spoke about the International Centre for Dispute Resolution, the AAA's international division; the different models and uses of ADR; and how the models might apply in Armenia. "It was an honor to speak with the group about ADR and our legal system. I hope they take back what they have learned to improve their own system," said Noll, who is based in the AAA's Cincinnati regional office.

Armenia, located in southwestern Asia (east of Turkey), was part of the former Soviet Union. Its legal system is based on civil law.

"The Armenian lawyers are intensely interested in every aspect of their counterparts' professional lives, from the nuts and bolts of running a law office to the principles and ethics of a democratic legal system," said Jan Sherbin, manager of this particular Community Connections Program. "We are showing them ideas they can implement immediately and also ideas they can work toward over the years."

Community Connections is designed as a partnership between the USAID and private organizations in the United States. The Greater Cincinnati World Affairs Council coordinated the program for the Armenian group and arranged opportunities for an exchange of information with local organizations, including the AAA's Cincinnati regional office.

Published: 2 August, 2010
Source: http://www.adr.org/sp.asp?id=38337





CRESTVIEW HILLS, Ky. - Crestview Hills law firm Dressman Benzinger Lavelle recently played host to 10 Armenian lawyers.


The visit was part of a Community Connections program designed to give the Armenian lawyers some insight into how American law firms operate and also build relationships between the two countries lawyers.

The 10 lawyers are from the Armenian capital of Yerevan. All work in a new law firm or Armenia’s new public defender program. Armenia is transitioning to a more democratic judiciary system.

"We are showing them ideas they can implement immediately and also ideas they can work toward over the years," said Jan Sherbin, who is managing the Community Connections program.

The Armenian lawyers will spend three weeks in the Cincinnati area, visiting law firms, courts, judges, law professionals and universities.

Published: 27 July 2010
Source: http://www.kypost.com/dpp/news/local_news/armenian-lawyers-learning-from-crestview-hills-law-firm




Armenian Attorneys Learn About Supreme Court Procedures

Three Supreme Court of Ohio administrators briefed a delegation of 10 Armenian attorneys on court responsibilities and operations on July 21.

The afternoon briefing was part of a three week program for the Armenian lawyers sponsored by Greater Cincinnati World Affairs Council and the U.S. Agency for International Development. The program is designed to assist the Armenians to better understand the inner workings of American law firms and courts.

Assistant Administrative Director Richard A. Dove provided the delegates with an overview of the role and responsibilities of the Supreme Court and the appellate process.

Jonathan W. Marshall, Secretary to the Board of Commissioners on Grievances & Discipline, addressed the codes of professional conduct and the disciplinary system.

Director Lee Ann Ward outlined procedures and oversight of the Office of Bar Admissions.

The specific topics were requested by the program organizers.

The Armenian delegates over the past two weeks have met with an array of attorneys, judges, court administrators and educators in the Cincinnati area. Program discussion topics include:

Law firm organization, policies and regulations
Marketing and personnel management skills
Case management practices
Independence of U.S. attorneys and courts.
Legal reform in Armenia has slowly evolved during the past two decades. Armenia instituted sweeping reforms to its constitution, codes and laws to comply with Council of Europe and Organization for Security and Cooperation requirements. Observers note corruption has undermined the credibility of the legal system.

The Armenian legal system has taken a series of important steps to advance rule of law. A new Constitution was adopted in 1995 and amended in 2005. New civil and criminal codes were enacted, as well as judicial code restructuring the court system. The roles of prosecutor and advocate were also better balanced.

A law enacted in 2004 established advocates as private practitioners, independent of the Ministry of Justice, and provided ethical guidelines.

The delegates were scheduled to return to Cincinnati July 22 and will return to Armenia next week.

23 July, 2010
Source: http://www.supremecourt.ohio.gov/PIO/news/2010/armenianAttys_072310.asp




Presentation of "Internal and Individual Legal Acts of Employer" Book Held Today in Yerevan

According to the co-author of the book Hovsep Poghosyan, the
publication contains those legal acts of the employer that immediately
proceed from the requirements of the Labor Code of Armenia. In
particular, according to him, the point is about mandatory legal acts,
particularly internal disciplinary rules.

The book also contains examples of canceling job contracts, job
descriptions, contracts on full material responsibility, orders of
announcing contests for filling vacant positions, holding of qualified
exams for eligibility for a position, and also governmental acts,
provided by the Labor Code of Armenia.

”According to the new Labor Code, a new culture of interrelations
between employers and employees that require clear-cut and
understandable rules of the game is established” Poghosyan said.

He reported that this book is the second publication of the series of
four books concerning the Armenian Labor Code. The first publication,
issued in 2005, was devoted to job contracts and was out of print
for a month. “The third book will be devoted to the issues of
social partnership and activity of the public labor inspection”
Poghosyan said.

Besides this, a decision was made to publish a periodical with its
website that will contain problems of employers and employees and
suggestions for solutions to these problems.

The book's edition consists of 600 copies. It costs AMD 3000 (about
$7). The authors are Hovsep Poghosyan, Sedrak Asatryan and Olga
Hovhannisyan.


Published June 28 2006
Source: http://www.armeniandiaspora.com/forum/showthread.php?p=55199




Policemen Work "Approximately". Citizen Files a Lawsuit Against Road Police

A district court of Kentron and Norq Marash communities was supposed to hear the case of citizen Khachikyan against major of road police Harutunyan. Trying to stop the car of citizen Khachikyan, Harutunyan blamed him in 'escape.' Saying that the policeman's accusation is groundless, citizen Khachikyan filed a court case. Today the court was supposed to hear the lawsuit of the citizen against the road police but the latter did not appear with an appropriate authorization letter and a passport due to which the hearing was put off until September 17.

The representative of the citizen in the court, Sedrak Asatryan, presented the happening in a talk with a correspondent of Panorama.am. The policeman had stopped Khachikyan making some moves with his hands, which is banned by law. Referring to article 17 of the law ''On road traffic safety,'' Sedrak Asatryan says road police may stop cars only with a stick, red siren or a loudspeaker.

''The person sitting next to my defendant testifies that the policeman stopped him using his hand. They even thought he was catching a taxi. The whole problem is that these policemen are working ''approximately.'' Regulations mean nothing to this policemen. He has got a heritage – whatever he wants, he can do with the drivers,'' Sedrak Asatryan explained.
Asatryan beleives in case they win the case, it will be a good precedent for the road police. Otherwise, citizen Khachikyan has to pay 200,000 Armenian drams in fine.

Published: 28,08,2007
Source: Panorama.am
http://www.panorama.am/en/law/2007/08/28/avtotesuch/



The Legislative Issues of Foreign Investments in RA


In the conditions of global crisis, encouraging investments in Armenia has become a great issue. Taking into account the importance of this issue, Panorama.am had an interview with Sedrak Asatryan, director of Concern-Dialog Law firm.
Panorama.am – your company provides legal services to trading companies, including companies with foreign investments. In your opinion, is the Armenian legislative field convenient for the foreign investors?
S.A.: If we estimate the legislative field in RA from the point of view of performing foreign investments, in general the conditions are not so bad. There is a law on “Foreign investments” which gives the investor some guarantees, that’s, according to the 7th article of the law regulating the foreign investments in case of amendments in the legislation; the investor can use the legislation acting at that period while making investment.  Another issue is the problem of application of laws and here we have certain problems.
Panorama.am – can you give an example where the law is not used or is not used properly?
S.A: unfortunately the list of such laws is large, but I will try to give examples of the application of laws connected mainly with investors’ sphere. The law on “State Registration of Legal Entities” was amended in 2008 and a term came into force on the first of September of that year, that’s, the whole information about General State Register Book, as well as the charters of the legal entities should be placed in the web-site. But the law does not indicate in which web-site this information should be placed. May be one of the main reasons is this factor, that the information is not provided by internet yet. There are more serious problems in this law as well, which do not appear in the list of so called amendments. For example, in the 21 article, if the founder is a legal entity, he must provide the state registration the decision of the authorized body of the legal entity together with the list of necessary documents for state registration.
The problem is that the name of the authorized body is not mentioned in the charters of legal entities of all foreign countries, so, if the founder is a foreign legal entity, in this case a serious problem occurs concerning the state registration of the legal entity which contains real corruption risks.
I would also like to speak about the usage of the RA law on “Electronic documents and electronic signature” which came into force in January 2005, but does not act, or acts partially in the state bodies. And though all the sub-legislative acts determined by the decree of the Government of RA are accepted for the usage of the law, they are incomplete; especially the procedures of creating certification centers are not regulated by them. This is the main reason that such certification centers have not been created yet.
Another issue is the RA law on “Special delivery of documents” which came into force in May 2007, but it does not act yet. We periodically ask for information the national operator of postal service why documents are not delivered by postal offices according to the procedures of this law. This law can solve serious problems connected with the notifications and content of other documents by presenting thorough evidence and lessening the risk of good delivery of important documents by post.
The next issue is the RA law on “Foreigners”, which came into force in February 2007, but since now the authorized body who gives permission to the foreigners to work in Armenia, is not appointed by the government yet. Moreover, while providing living status to the foreigners, the department of visas of the Police is guided by the old list of the necessary documents, instead of the new one, etc.
Panorama.am – You spoke about legal usage of the laws. In your opinion are there any laws in that field, which are used  but do not allow the investors ability to act more flexible in business? 
S.A.: Yes, there are a lot. I will try to mention the most important ones. The non-flexibility of the above mentioned laws is one of the main reasons why they are not used properly. But I would like to speak about the absence of the Tax legislation which makes a real mess in the legislative field.
The foreign investor or generally any entity should have a compact legislation with the help of which will regulate the whole tax correlations but not laws, orders, instructions, clarifications of hundreds of pages, etc.
The next field that I would like to mention is the field of regulation of labour relations. This field is regulated by the labour code, more or less it solves the problems of this field but is nor flexible as well. Mainly, the employers are not able to regulate the problems of providing their employees with good and effective training courses in abroad, and then keep them working in their companies for a certain period. 
One of the problems in Armenia is the non-flexibility of real estate rental institute. It does not allow formulating the renting in a way to perform many business plans.  The institute of Commercial Lease is not separated and notary validation and state registration is required even for real estate lease agreements of 10 days.
Taking into account our experience of cooperation with foreign investors of the last years, these problems can be listed but they are highly specialized.
Panorama.am – In your opinion, if flexibility is provided to the listed laws mentioned above, will the mentioned problems be able to be solved?
S.A. – I think it’s not enough. The proposed changes are only the first steps for rectifying the situation. The experience proves that we can have good law but some people from State offices and local self-government bodies who apply the law, have not read the law or have read it but continue to use the laws in a way they want.

Non-official translation
By Liana Kamalyan

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