Important Developments in Corporate Governance of Russian Joint Stock Companies
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Key takeaways:
- A federal law providing for important amendments to the corporate governance system of Russian joint stock companies became effective on July 19, 2018
- The law changes the approach towards determination of a quorum for a general shareholders’ meeting approving an interested party transaction; introduces amendments related to establishment of an audit commission; clarifies when the amount of dividends on preferred shares is considered to be determined in the company’s charter; and extends the voting rights of holders of preferred shares at general shareholders’ meetings, etc.
- Starting on September 1, 2018, public joint stock companies will be required to introduce risk management and internal control systems and, from July 1, 2020, to arrange for an internal audit of those systems.