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Court denies USD5 million compensation to ex-chief of Bank of Moscow

A criminal case against ex-president of Bank of Moscow Andrei Borodin and his former first deputy Dmitry Akulinin was opened in the end of 2010

MOSCOW, November 21 (Itar-Tass) — The Moscow Meshchansky Destrict court has turned down a lawsuit filed by ex- chief of Bank of Moscow Andrei Borodin who applied for a compensation worth five million dollars for early termination of his contract, Borodin's lawyer Mikhail Dolomanov told Itar-Tass.

The court has turned down the lawsuit; the court resolution has no legal basis behind because it contravenes the law and the norms of the Labor Code specified by the Constitutional Court; therefore, we will appeal the court resolution at the Moscow City Court, the lawyer said.

The Russian Labor Code envisages that a head of any joint stock society might be fired by its Board without explaining the reasons, but the tough norm is compensated by a mandatory compensation to the former head dismissed. The compensation is to be paid no later than the resignation date, the lawyer said.

"The Meshchansky district court has overruled legal guarantees due to Mr. Borodin as well as heads of all organizations to which they are entitled in equal measure, declaring Borodin is not entitled to a compensation for terminating his contract ahead of term," the lawyer said.

A criminal case against ex-president of Bank of Moscow Andrei Borodin and his former first deputy Dmitry Akulinin was opened in the end of 2010. Both were accused of fraud and put on an international wanted list.

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