Amendments to Civil Code to affect corporate law
MOSCOW, April 4 - RAPSI. Amendments to the Civil Code will entail modifying the corporate legislation, but will not cause any difficulties to companies, Ivan Oskolkov, the Economic Development Ministry's representative, told the PRIME business news agency.
President Dmitry Medvedev stated on Monday that he submitted amendments to the Civil Code on fundamental civil rights institutions to the State Duma.
Medvedev noted it took a long time to develop a well-balanced draft law "which will not damage the fundamentals of the Civil Code." He also expressed hope that the amended code will improve the investment climate in Russia.
The proposed amendments give an impetus for the legislation's development, Oskolkov said. He emphasized that the novelties will allow for more flexible regulation of nonpublic companies.
The new law will also crack down on public companies so that investors can feel better protected. The amendments promote informational transparency, unification of requirements for the regulation authorities and their activities.
Oskolkov noted that companies which trade their securities at the stock exchange are considered public companies. "Actually, nothing will change dramatically for these companies," he said.
Meanwhile, a special regulation tool will be created for non-public companies, there will be more room to regulate corporate management procedures.
The amendments have been under development for several years. Still they are expected to be up to date as 15 years have passed since the first part of the Civil Code was adopted.