Legislative Chamber considers draft law “On joint stock companies and protection of shareholders’ rights”

The new edition of the law “On joint stock companies and protection of shareholders’ rights” will help to further developing corporate management in Uzbekistan through clarification of current legislation, protect rights of shareholders, strengthen management role in joint stock companies, access to information about activities of public companies, the press service of the lower house of the Uzbek parliament said.

The adoption of the draft law will also help to develop corporate relations and set clear mechanisms of regulation of creation of joint ventures, form their charter capital, determine market price of their shares, placement of shares via public placement, etc.

At the same time, the document pays special attention to protection of rights of shareholders, including minority shareholders, sets clear mechanisms of their participation in management of public companies, creation of special bodies, which represent interests of minority stakeholders.

The draft law also sets requirements on deals of the public companies to ensure their transparency. The public companies will disclose information on deals, in which they have interest. At the same time, on the request of Supervision Council or shareholders, independent auditor organizations should study the deal and give their conclusion.

The draft law “On introduction of changes and amendments to some legislative acts of Uzbekistan in connection with adoption of the law “On joint stock companies and protection of shareholders’ rights” introduces changes to some legislative acts to harmonize norms with the legislation.

In particular, it introduces changes Civil Code, laws “On limited liability and additional liability companies”, “On securities market” and others.

Legislative Chamber adopted corresponding decisions on considered draft laws.