News Column

Open and closed joint stock company concept no longer to be used in Uzbekistan

May 26, 2014

TASKENT (CIHAN)- The open and closed joint stock company concepts will be no longer used in Uzbekistan under the new version of the law "On joint-stock companies and protection of shareholders' rights".

The new version of the law shortens the term of shareholders' and (or) companies' pre-emptive rights to purchase shares.

This term cannot be less than 10 days and also cannot exceed 30 days from the date of putting shares for sale (previously, this right was effective for a period between 30 to 60 days).

The pre-emptive right may be provided by a company's charter if the number of its shareholders does not exceed 50.

The new version of the law also clarifies that a founding assembly's decisions should be registered with a protocol signed by all the founders of that company.

No founding assembly is held at the company having only one founder.

The transformation of a governmental organization into a joint-stock company is conducted based on a decision taken by the body authorized to manage the state property, without holding a constituent assembly. (Cihan/Trend az)


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Source: Cihan News Agency (Turkey)

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