The State Duma has received a bill draft for amending the requirements towards interested-party transactions and any major deals

The bill draft No. 1062760-6 “Regarding the amendments to the federal laws “Regarding joint-stock companies” and “Regarding limited liability companies” in terms of regulating major deals and interested-party transactions” is already being discussed at the State Duma. Its main goal is to improve the notion of interested-party and major deals between different companies.

The bill draft focuses on several criteria defining whether a deal is a major one or not. By narrowing down the number of criteria setting the deal as a major one, the Government pursues to cut the costs for the business people.

Allegedly, the option of applying the ‘major deal’ mode stipulated in a company’s charter for any other transactions will be excluded. Besides, in case this bill passes, the joint-stock companies will be entitled to include another term in their charter, according to which some of the deals listed in the aforementioned documents would require an approval from all shareholders.

Apart from those amendments, the bill draft will also change the criteria for a deal to qualify as an interested-party transaction.