Government amends law on joint stock companies
YEREVAN, May 4. /ARКА/. А number of amendments to the Law on Joint Stock Companies and related laws, drafted by the government of Armenia were sent to the parliament's consideration in the first reading on Tuesday.
Deputy Minister of Justice Vahe Danielyan said that some provisions of the current law On Joint Stock Companies are inconsistent with business developments. In his words, the amendments propose that these provisions be brought in compliance with progressive international experience.
"In particular, the amendments if approved by the parliament will allow companies to issue ordinary shares of different classes, which is currently impossible. They also propose to liberalize settlements of large transactions. At the moment, these are transactions exceeding 25% or more of the book value of the company's assets," he said.
The changes proposes to increase this threshold to 50% or more, taking into account the World Bank Doing Business methodology. Another proposed change liberalizes the powers of the company's management bodies.
The proposals suggest also corporatization of employees, which, according to Danielyan, will create an opportunity to introduce the institution of bonuses with shares. -0--