ArmInfo. The Parliament of Armenia at its March 27 meeting in the first reading adopted the amendments to the law on Joint Stock Companies and the package of related laws, discussed the day before.
Presenting the draft amendments, Minister of Economic Development and Investments of the Republic of Armenia Tigran Khachatryan stressed that the package is aimed at ensuring transparency in the activities of companies. This, in particular, is about limiting the ability of subsidiaries of joint stock companies to acquire shares of the parent company. For example, CJSC Gazprom Armenia will not be able to acquire shares of PJSC Gazprom. In total, 9 major areas of joint stock companies are subject to settlement.
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 must 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 these shareholders by making decisions that are vital for companies, no less? votes of participants of the general meeting of 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.