Large companies may be allowed to ignore the votes of “unfriendly” shareholders

A number of Russian backbone enterprises may get the right to make corporate decisions before the end of this year without taking into account the vote of co-owners from “unfriendly” jurisdictions, figured out Interfax.

According to the agency, a temporary procedure may be introduced by a relevant presidential decree prepared by the Russian Union of Industrialists and Entrepreneurs (RSPP). The initiative is about companies from the fields of energy, engineering and trade, which also meet three more conditions:

“According to the draft, the votes of “unfriendly” co-owners and persons nominated by them to the management bodies will not be taken into account until the end of 2023 when determining the quorum and voting results if such a decision is made by other co-owners of the company,” the agency notes.

The RSPP itself explained that about 14 backbone organizations will fall under the decree, but the union does not disclose their names in its appeal to the government. At the same time, foreign co-owners support this initiative, since they cannot take part in corporate decision-making due to the risks of criminal liability in their countries. This measure will allow the enterprises referred to in the project to approve budgets and business plans, make personnel decisions, change the composition of management bodies, extend the powers of general directors, etc.