David Sargsyan,
Head of Legal Advisory Services of Ameria Group of Companies
Mr. Sargsyan, why did you choose law as a profession?
You ask a difficult question. No one in my family practiced law, so it wasn't a family tradition, just my decision, which, by the way, I made following the rule of exception. My father was a civil engineer and he did everything to introduce me to the field of engineering. There came a point, however, when he realized that my humanitarian abilities were stronger than my mathematical abilities, and he supported me when I chose the field of law and succeeded in that field.
What are the skills that a top lawyer like you should have? Are there any personal qualities that made you what you are now?
Thank you for the appreciation. There are many lawyers in the market today, and I am one of them, maybe successful in one field or another, because people tend to specialize in certain fields. I think the biggest and most important qualities, regardless of profession, are: continuous development and self-improvement, a broad understanding of the situation and a non-standard way of thinking. These are the main qualities that I have acquired especially by studying in Western educational institutions. Unfortunately, understanding in Armenia today is based on the rule of "yes" or "no", that is, either you can do something or you can't. People do not make an effort to study the rule from different angles, to form a multifaceted understanding of it, which would allow the rule to be applied as an innovative solution. I am convinced that this ability is very important for the Armenian market, and this is the secret of Ameria's success: we find solutions that others do not find and do not even try to find.
What are the trump cards or features, thanks to which "Ameria" group of companies has become one of the market leaders?
In addition to non-standard thinking and innovative solutions, Ameria is always at the customer's side, always with the customer and working for the customer. At the heart of everything is service, moreover, service must be performed at the highest level, and this is a mandatory requirement; if any team member does not fit Ameria's customer-centric values and principles, we do not accept that person's services. At Ameria, we always meet the highest quality standards.
"Ameria" legal service provides legal advice in various branches of the economy. According to you, what is the most difficult branch in terms of the existing legal framework?
I would emphasize not on the branches of the economy, but on existing or absent legal acts and concepts in Armenia. In particular, we need to develop the legislation governing the share sector so that we can conclude appropriate share agreements. For example, there are many issues related to shareholders that are not regulated by the current RA legislation, instead we have to regulate them at the contractual level. Another hot issue is the partnership between the public and private sectors, which we urgently need to develop and which can play a decisive role in terms of foreign investment. By the way, "Ameria" has a significant contribution in this field.
Of the many cases you have won, which ones are you particularly proud of?
I wouldn't use the word "win", rather Ameria had a stake in those cases and successfully completed the deal. Personally, for me and my team, I think the most important transaction was the entry of "Contour Global" into Armenia. This was a significant Western investment that brought diversity to the RA energy sector. The transaction itself was very complex and dynamic, at all stages we continuously cooperated with other lawyers and international experts. Before we prepared the deal, reached a preliminary agreement, and finally closed it, several years passed, during which our knowledge base grew incomparably.
You were at the beginning of the formation of the RA securities market. How would you rate the progress made since the 90s and the challenges of today?
Yes, we have worked in this area within the USAID initiative. I was working with the company that won the competition. However, we still have a lot of room to grow because, unfortunately, the stock market is not as active as we would like. Of course, the legislative field has developed: the rules have been simplified, the procedures have been regulated, the field has become more comprehensible. We have a number of companies listed on the market, bonds are circulating. On the other hand, I think that in order to develop the securities market, the economy of Armenia must first develop. At the moment, the market is too small, and I think regional companies should also play a significant role in establishing this industry.
The RA government proposes to amend the Law on Investments. In your opinion, can these changes contribute to the growth of foreign investment and what will be the overall impact on the country's economy?
RA investment field legislation was developed in the first years of independence. One of the key laws, the Foreign Investment Protection Act, has long since changed. It includes a provision to establish favorable conditions for foreign investors, which excludes the application of unfavorable changes in legislation to investors for a certain period of time. Therefore, any new changes proposed now must be based on the history of the law and take into account all other changes in the legislative framework, so that it is possible to set clear rules for investors in a single tool, through which the investor can analyze the market and decide whether to enter the given market or not. : I believe that the changes carried out for this purpose can contribute to the growth of investments in the future.
What impact can the amendments to the RA constitution have on corporate governance and the business environment?
We are now transitioning to a new constitutional government system for the country. In my opinion, this will not really affect the business as these are different industries. Corporate governance is part of private institutional development, while constitutional reforms imply a transition from a presidential system of government to a parliamentary system. Of course, if we compare, we will see that the last two are more closely related and closer to each other. I think the changes in corporate governance and business environment have nothing to do with the constitution at all, but come from the practical implementation of laws, and our laws, in my opinion, are quite modern and reflect all the trends in today's business world. We now need to improve the enforcement and enforcement models of existing laws.
Your lady is also a lawyer. Do you have a "marriage secret" or guide that helps you grow and maintain your relationship?
It's an interesting question. My wife and I have not entered into any kind of contract, as lawyers call it, a "prenuptial agreement". I was once asked by a foreign client to assist in drafting his prenuptial agreement. He was German, his wife was Armenian. To his question about whether I have experience in drafting prenuptial agreements, I answered "yes", and to the question of how many contracts I have drawn up, I answered "zero". He was surprised and asked how I will deal with the matter. In fact, there is no lawyer dealing with prenuptial agreements in Armenia, this field almost does not exist in Armenia. In addition, there are unwritten rules in the family that guide us. The main rule in our family is that my wife and I do not argue about legal issues and we respect each other's opinions. We don't flaunt our strengths, we are equal. Another important factor that plays a decisive role in the relationship is that we do not interfere in each other's affairs and do not disclose information about our customers, because the market is small and there is a potential conflict of interest. In general, in some cases I have no idea about my wife's current affairs, nor she about mine. We are just discussing general ideas as experts in the field. We accept each other's position, even if we disagree.
Your advice to young people: how to self-improve and grow?
Unfortunately, due to lack of time, I don't teach either. Teaching was one of the main driving forces for me to connect with the younger generation, helping me to always be in touch with fresh ideas and ready to answer the most difficult questions. My advice, especially in today's globalized world with no borders and endless opportunities to learn and educate, is to be an innovative thinker, keep evolving and listen to your client while following the rules and principles of your profession.
Source: AmCham Newsletter