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WEEKLY LEGAL NEWSLETTER FINANCIAL STATEMENTS

CONGRESS THROUGH THE REVISED ENTERPRISE LAW

This morning 17.06.2020, with the majority of voting vote, Congress adopted the Business Law (revised) with 10 chapters, 218 things, which are enforceable from 01.01.2021.

The law has many new regulations on business activities, including regulations on State enterprises (DNNN). The law amended the concept of DNNN according to the principle of dividing the types of businesses with state ownership by varying degrees, each type of enterprise has regulations on the appropriate governance organization to improve governance, publicity, transparency and accountability, ensuring equality with enterprises in other economic components.

We would like to quote some notable changes in the Enterprise Law (revised) 2020 as below.

AMENDMENTS TO THE STATE ENTERPRISE REGULATIONS ARE AS FOLLOWS:

The state-owned enterprise is administered in the form of a limited liability company, a joint stock company, which includes:

A-The state-led enterprise holds 100% of the Charter capital;

B-the state-based enterprise holds over 50% of the Charter capital or the total number of voting shares.

A-state-led enterprise holds 100% of charter capital including:

A) a member limited liability company held by the State 100% of the Charter capital is the parent company of the state economic group, the parent company of the State corporation, the parent company in the parent company-subsidiary company;

b) The limited liability company a member is an independent company held by the State 100% of the Charter capital.

B-the state-based enterprise holds over 50% of charter capital or the total number of voting shares including:

A) two or more member limited liability company, the state-owned corporation holds over 50% of the Charter capital, the total number of voting shares being the parent company of the economic group, the parent company of the State corporation, the parent company in the parent-subsidiary group of Companies;

b) Two or more member limited liability company, JSC is an independent company held by the state on 50% of charter capital, the total number of shares with voting rights.

BUSINESS HOUSEHOLDS

Neglect of business households; Remove regulations on business transformation into enterprises.

The Government will guide registration and operations with respect to the business households, until the release of a separate law on business households.

STAMP NOTIFICATION PROCEDURES

Do not specify the procedure to report a stamp with the business Registration authority.

SELL INDIVIDUAL BONDS OF NON-PUBLIC COMPANIES

The subject of the purchase and transfer of bonds is limited to the professional securities investor.

This regulation is necessary, in accordance with the Law on common laws and practices.

07/07/2020 Views: 13.094
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