The government will consider the project on improvement of protection of rights of minority investors

© Fotolia / апѕһаг73Дом of the Russian government. Archival photoThe government will consider the project on improvement of protection of rights of minority investors© Fotolia / anshar73

The government of the Russian Federation at session on Thursday will consider a bill aimed at improvement of corporate legislation, including the protection of the rights of minority investors, reported the press service of the Cabinet of Ministers.

The document is aimed at improving Russia’s position in Doing Business rating in terms of «protection of the rights of minority investors». The project, in particular, provides clarification of the criteria based on which the size of dividends on privileged shares is considered to be determined by the company Charter.

It is also proposed to legislate the regulation on the Committee of the Board of Directors (Supervisory Board) audit, internal audit and systems of internal control and risk management in public joint stock companies.

In addition, it is proposed that the audit Commission is created in the public joint-stock company in cases when it is stipulated by the Charter of this society. If the company creates an auditing Commission, it shall be organized internal audit.

Provides for the participation of the Board of Directors (Supervisory Board) in the formation of management bodies of joint-stock companies, including the possibility of delegating the election of the Executive bodies of the competence of the General meeting of shareholders within the competence of the Board of Directors without the shareholders right to request redemption of their shares.

According to the government, the bill will enhance the level of protection of minority investors and the quality of corporate governance in Russian companies.

Source