ArmInfo.CJSC "Gazprom Armenia" will not be able to acquire shares of the parent company represented by PJSC "Gazprom". The Parliament of Armenia at a meeting on March 26 discusses the amendments to the law "On Joint Stock Companies" and in a package of related laws that restrict the rights of subsidiaries to acquire shares of the parent company. Presenting the draft law, Minister of Economic Development and Investments of the Republic of Armenia Tigran Khachatryan stressed that this provision is aimed at ensuring transparency in the activities of companies.
In total, 9 major areas of joint stock companies are subject to revision. In addition to the aforementioned amendment, it is also proposed to establish a provision according to which dividends may be paid to shareholders within a year from the moment of the decision being made by the general meeting of shareholders.
Currently, according to Tigran Khachatryan, the timing of dividend payments is not regulated by law. With the adoption of the package, shareholders can be confident in obtaining their financial assets. In addition, it is also proposed to involve independent directors in the management of joint stock companies, which should be at least 1/3. Independent directors can be individuals who have not worked for this company, or from an interconnected company for the past three years, or have held senior positions in it.
It is also envisaged to protect the rights of minority shareholders with fewer preferential shares. As the minister explained, out of 100 shares 10 may be preferential and belong to minority shareholders. The proposed amendments are designed to protect the interests of small shareholders. The minister stressed that the government's proposals are aimed at improving the business environment and the country's position in the World Bank's Doing Business ranking. They are aimed at expanding the principles of corporate governance, increasing the level of transparency in the activities of companies, protecting the rights of minority shareholders. In general, according to the minister, the package is aimed at developing the securities market and improving conditions for attracting investment to the private sector. As expected, the draft will be adopted in the first reading at the March 27 meeting of the RA National Assembly.