The government is preparing a reform of the mechanism for protecting minority shareholders of joint-stock companies

The authorities decided to reform the mechanisms for protecting minority shareholders from takeovers: the government has prepared a large-scale package of amendments to the law on joint-stock companies (JSC; Vedomosti has the draft amendments). The development of the document was caused by the “long overdue need” to balance the interests of major and small owners associated with the acquisition of large blocks of shares in PJSC, follows from the explanatory note. The curator of the bill is First Deputy Minister of Economic Development Ilya Torosov. Vedomosti sent a request to the Ministry of Economy.

Amendments are made mainly to Art. 84 of this Federal Law (“Procedure for contesting a transaction for which no consent was obtained”). This section of the JSC law should restrict the main owners to enter into transactions solely in their own interests.