Amendments Introduced to the Law on Shareholder Protection and the Customs Code

Tashkent, Uzbekistan (UzDaily.com) — President of Uzbekistan Shavkat Mirziyoyev has signed a law introducing amendments and additions to several legislative acts in the country.

One of the key documents updated is the Law “On Joint-Stock Companies and Protection of Shareholders’ Rights.” Under the new provisions, a shareholder owning more than 50% of a company’s voting shares, or holding a number of voting shares exceeding that of any other shareholder and able to exert decisive influence on the outcome of voting, is now officially recognized as a majority shareholder.

The law also clarifies the fiduciary duties of members of the supervisory board, the company’s director, board members, and trustees. Their responsibilities include: acting in good faith with regard to the interests of the company and its shareholders; refraining from using the company’s assets for personal purposes or contrary to the company’s charter, internal regulations, or decisions of the general meeting and supervisory board; abstaining from entrepreneurial activities in areas related to the company’s main operations without approval from the relevant governing body; maintaining confidentiality of information about the company’s activities; and refraining from receiving material benefits in exchange for decisions made.

Additionally, the law introduces changes to the Customs Code. Customs duties at the tariff rates will now apply to all goods from countries enjoying the most-favored-nation (MFN) status in trade and economic relations with Uzbekistan, regardless of the country of origin or export.

For goods from countries not enjoying MFN status or of uncertain origin, additional rates will be added to the customs duty: 5% for goods with an ad valorem rate of up to 10%, 10% for goods with rates from 10% to 20%, 15% for goods from 20% to 30%, and 20% for goods with rates of 30% or higher.

The law will come into force three months after its official publication.