Armenian parliament approves reforms of management of joint stock companies
19.04.2019,
14:31
The Armenian National Assembly passed Friday amendments to the law on joint stock companies, the law on LLCs and the law on the securities market. As many as 97 MPs voted for the bill. The amendments propose to restrict repurchase of parent companies’ securities by subsidiaries, which will make it possible to ensure transparent choice.
YEREVAN, April 19. /ARKA/. The Armenian National Assembly passed Friday amendments to the law on joint stock companies, the law on LLCs and the law on the securities market. As many as 97 MPs voted for the bill. The amendments propose to restrict repurchase of parent companies’ securities by subsidiaries, which will make it possible to ensure transparent choice.
The next restriction applies to prior securities, which are issued by companies for a particular cost and which have a fixed guaranteed yield.
The bill implies that any decision to restrict preferential shareholders’ rights may be made only when ¾ holders of prior stocks vote for it.
The restriction will be applied in the event of the decision of decrease of recalculation of dividends on prior stocks.
It is also proposed to set dividend payment terms. In particular, annual and intermediate dividends have to be paid to shareholders within one year since the moment of making the dividend payment decision. There was nothing like that in the law before.
The next provision proposes to include independent members in the directorial board (at least 1/3 of the total number of the board members).
An independent member must meet certain international experience parameters. In particular, candidates to the board membership may be eligible to inclusion in the directorial board if they did not work as chief executive officers in these particular organizations and didn’t work at these companies or the companies affiliated with it. -0----
The next restriction applies to prior securities, which are issued by companies for a particular cost and which have a fixed guaranteed yield.
The bill implies that any decision to restrict preferential shareholders’ rights may be made only when ¾ holders of prior stocks vote for it.
The restriction will be applied in the event of the decision of decrease of recalculation of dividends on prior stocks.
It is also proposed to set dividend payment terms. In particular, annual and intermediate dividends have to be paid to shareholders within one year since the moment of making the dividend payment decision. There was nothing like that in the law before.
The next provision proposes to include independent members in the directorial board (at least 1/3 of the total number of the board members).
An independent member must meet certain international experience parameters. In particular, candidates to the board membership may be eligible to inclusion in the directorial board if they did not work as chief executive officers in these particular organizations and didn’t work at these companies or the companies affiliated with it. -0----
