On February 5, 2020, a meeting of the Legal Committee of the CGPA on preparing the recommendation on the new law on JSCs was held. Each of those present expressed their comments and suggestions. As a result, it was decided to continue the work on the formulation of proposals to the draft law aimed at its improvement, taking into account the tremendous practical experience of the current law application by the CGPA members. 

The main changes to the draft law included proposals:

1. to change the concept of holding a shareholders meeting in such a way as to preserve the existing methods of holding the meeting and to supplement them with new ones proposed in the draft law;

2. to abolish the requirement for the minimum amount of the authorized capital, which will allow to attract smaller investments, expand opportunities for reorganization into joint-stock companies and the like;

3. to improve:

• the procedure of mandatory buyback of shares at the request of shareholders;
• the norms regulating the activity of the Board of Directors proposed in the draft law;
• the standards governing the procedures for granting consent to large transactions and interested-party transactions;
• the norms on share valuation proposed in the draft law;
• the rules proposed in the draft law on competitive offer in the course of a bid-out.

The formalized proposal on the draft was approved by the CGPA Management Board and submitted in the people’s deputies – initiators of the draft law and representatives of the NSSMC.