The Moscow City Situation Center hosted the second meeting this year of the Working Group on Improving Corporate Legislation under the Commissioner for the Protection of Entrepreneurs’ Rights in Moscow. The key topic of discussion was a bill aimed at resolving the long-standing issue of “lost shareholders.”
Valerian Mamageishvili, a Counsel at KKMP, participated in the discussion of the bill. The central topic of the discussion was the bill designed to definitively resolve the issue of “lost shareholders”—individuals who have not exercised the rights conferred by their shares in joint-stock companies for an extended period of time.
The event brought together representatives from the Ministry of Economic Development of the Russian Federation, the Bank of Russia, the Russian Union of Industrialists and Entrepreneurs, the Association of Corporate Lawyers, registrars, as well as representatives from the business, academic, and legal communities.
Participants discussed initiatives to clarify the status of “lost shareholders,” the procedure for locating them, and the criteria for their identification, which will enable issuers and registrars to act in good faith. A mechanism was also proposed for companies to repurchase shares while respecting the rights of shareholders. The authors are confident that this will eliminate legal uncertainty, reduce corporate costs, and simplify reorganization, consolidation of control, and similar processes.
Following the meeting, the participants concluded that the bill was necessary and appropriate, and proposed their own additions, amendments, and new provisions, which will be taken into account as the legislative initiative is further developed.
Valerian Mamageishvili at a meeting of the Working Group under the Moscow Commissioner for Entrepreneurs' Rights
