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Putin sets temporary procedure for decision-making in Russian companies

It is noted that in case nationals from unfriendly states are members of a company’s management authorities, other shareholders will have the right to pass a resolution not to count their votes

© Mikhail Klimentyev/Russian Presidential Press and Information Office/TASS

MOSCOW, January 17. /TASS/. Russian President Vladimir Putin signed an executive order setting forth a temporary procedure of adopting resolutions in Russian major joint stock companies in energy, machine-building and trade spheres.

Management authorities of such companies will be able to make decisions without counting votes of shareholders from unfriendly countries. The document posted on Tuesday refers to companies meeting a number of criteria. One of them is that other countries or international organizations imposed sanctions against owners or beneficiaries of such companies. The second one is that foreign persons related to unfriendly states have interests in the authorized capital or shares in such companies but not above 50%. Furthermore, revenues of an entity for a year preceding the decision made should be above 100 bln rubles ($1.46 bln).

In case nationals from unfriendly states are members of a company’s management authorities, other shareholders will have the right to pass a resolution not to count their votes. The temporary procedure will be effective until December 31, 2023 inclusive.

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