Senators approve law on improving the business environment

Tashkent, Uzbekistan (UzDaily.com) -- Senate of the Oliy Majlis of the Republic of Uzbekistan approved the Law of the Republic of Uzbekistan “On introducing amendments and addenda to some legislative acts of the Republic of Uzbekistan”.

The document introduces amendments to the Law “On the Securities Market”, to the Housing, Land, Urban Planning Codes and a number of other laws.

The Law on the Securities Market is amended to introduce the concept of an “international bond” (issuing security issued by an issuer and hosted by a group of financial organizations, offered in one or more countries other than the country of the issuer, initially purchased (including by subscription ) only through this group), the removal of “international bonds” beyond the current procedure, according to which the Cabinet of Ministers establishes quotas and the procedure for admitting securities to floatation and circulation.

Senators noted that due to measures taken in the country in recent years, Uzbekistan’s rating in the World Bank and Doing Business International Finance Corporation improved twice and among 190 countries of the world our country rose from 146th to 76th place. However, the task of further improving the legal framework of the sphere is still relevant.

The amendments are aimed at this, which will contribute to further improving the image of our country in business. The law provides for the introduction into legislation of the requirements of the “Doing Business” report methodology aimed at creating a favorable business environment.

Thus, rules are introduced on the abolition of compulsory notarization of the contract for the sale of real estate, the abolition of the minimum share capital requirement of joint-stock companies and limited liability companies, the definition of minimum capital requirements for licensing requirements.

Also provides for the abolition of the requirement of the presence of the investor with a share of at least 15 percent in the authorized capital of the company. The procedure is established in accordance with which current shareholders have the preemptive right to acquire additionally issued shares, transfer to the general meeting of shareholders the competence of determining an audit organization for conducting a mandatory audit.