is responsible for the management and administration of the undertaking. It is not always easy for a foreign board of directors to control the Russian responsible agent, and this is one of the most unsatisfactory features of the legal position of British companies in Russia.
So far has this system of representation through "responsible agents" developed that there are now Russians who make it their sole business to represent foreign firms in Russia. This method is clumsy and inconvenient, but at present all foreign firms holding a concession in Russia must conform to these conditions before they can work in safety.
As regards taxation, foreign companies are treated in exactly the same manner as Russian companies. There is first the State Guild Tax, paid by all companies before they obtain their certificates of right to work. Subsequently there is an annual tax, levied upon the paid-up capital of the company, irrespective of profits. When a company is working, all accounts must be published, and shown to the Government official in charge of the district where the company is operating. A third tax is then levied on the profits of the company according to the rate of profit.
The position of debenture holders is one to be considered in reviewing the rights of foreign companies in Russia. They are not placed in a very favourable position as regards the priority of their claims over the assets of a company, since debentures issued abroad by a foreign company trading in Russia have no legal recognition in that country, and a holder of such debentures has therefore no priority over any other debtor. In order that debentures may receive official recognition in a
