This week was marked by issuance of a new edition of the Law on Joint-Stock Companies and Protection of Shareholders' Rights.
The important rule on the mandatory acquisition of at least 15% of a block of shares by a foreign investor has been abolished. This rule, introduced in 2016, did not showed efficiency - joint-stock companies were not managed to attract foreign investors. If the minimal requirement to the Charter Fund of the joint-stock company previously was 400 thousand USD, then 15% of this amount is 60 thousand USD, which turned out to be unattainable for many joint-stock companies: during this period more than 100 joint-stock companies decided to reorganize into other legal forms.
Moreover, the requirement for the minimum size of the Charter fund, with the exceptions provided for by the legislation, has also been defeated: it must now correspond to the amount stipulated in the licensing requirements. The main rule here is that the fund should be formed strictly within one year from the moment of state registration of the joint stock company.
Also, Companies whose shares are included in the stock exchange quotation list are now obliged to create an audit committee under the supervisory board, and also to have at least one independent member in the supervisory board.
In addition, the compulsory requirement for having round stamps containing the company name of the company has been also abolished. Thus, it is now forbidden for state agencies and other government officials to require stamping of documents from companies.
Next amendment is the mandatory announcement on holding annual and extraordinary general meetings of shareholders at least 3 weeks (instead of 1 week) before the date on the Single Corporate Information Portal. The companies are also obliged to publish there a list of all other entities, which have more than 5% of the Company's interest (a block of shares)
In addition to this, changes were also made to the Civil, Economic, Tax Codes, Laws On Bankruptcy, On State Tax Service, On Guarantees of Freedom of Business, On Limited and Additional Liability Companies, On the Securities Market and some other legal acts - all with the aim of improving the business climate in the country and increasing its investment attractiveness.