The NCCG position on the draft Federal law "On amendments to certain Russian Federation legislative acts in terms of improvement of mechanisms of implementation of rights of participants of economic societies for information".
The bill proposes to amend the existing legislation with the following changes:
- Changing the timing of a decision on the recommendations on payment of dividends,
- Changing terms of providing information to members of the society,
- Granting a shareholder, holding not less than 10% of the company voting shares, the right to demand an extraordinary independent audits at the company's expense,
- Changing of the list of documents to be provided to shareholders on request.
The National Corporate Governance Council considers that the bill includes controversial provisions, which are further to be negotiated. So, term changes must be removed from the draft law, since such changes have already been introduced in legislation in late 2013.
It should also be noted that the payment for the services of an independent auditor, called on demand of the shareholder, can be burdensome for legal entities.
For a list of documents to be provided to shareholders upon their request, it should be noted that the law should introduce a legal mechanism under similar circumstances to ensure the preservation of commercial secrets of the company.