Armenia amends law on joint stock companies

YEREVAN, May 26. /ARKA/. By a vote of 76 to 3 abstentions the Armenian parliament has passed today in the second and final reading a string of government-proposed amendments to the law on joint stock companies and a number of related laws.

Deputy Minister of Justice Vahe Danielyan said that a number of provisions of the current law are inconsistent with business developments. The amendments were designed to replace them in accordance with international experience.

The amendments allow the issuance of common shares of different classes, which is currently impossible. They also liberalize the settlement of large transactions. At the moment, these are transactions exceeding 25% or more of the book value of the company's assets.

The amendments also increase this percentage to 50% or more, taking into account the World Bank Doing Business methodology. The next change liberalizes the powers of the company's management bodies. -0--