Legislative Chamber considers several draft laws

lagislative_chamberThe Legislative Chamber of the Oliy Majlis of the Republic of Uzbekistan considered a number of draft laws aimed at further deepening of reforms in different spheres of society, the press service of the lower house of the Uzbek parliament said.

Members of parliament began their work with consideration of draft laws “On introducing amendments and addenda to the Law of the Republic of Uzbekistan “On joint-stock companies and protection of shareholders’ rights” and “On introducing amendments and addenda to some legislative acts of the Republic of Uzbekistan in connection with the introduction of modern methods of corporate governance in joint stock companies”.

It was noted that the purpose of these normative-legal acts – creation of favorable conditions for the involvement of foreign direct investment in the economy, improve the efficiency of joint-stock companies, providing their openness, introduction of modern methods of corporate governance, strengthening the role of shareholders in the strategic management of enterprises. The work on adopting the laws was actively participated by specialists of relevant ministries and departments, representatives of joint-stock companies, shareholders, scientists, economists, lawyers and the public. Factions of political parties and the deputy group from the Ecological Movement of Uzbekistan previously discussed and worked out their positions by presenting the responsible committee suggestions and recommendations for further improvement of normative-legal acts, which have been considered in the preparation of draft laws for the second reading.

The meeting was held in the format of debate that allowed thoroughly discuss the legal acts.

— Amendments and addenda to the Law “On joint-stock companies and protection of shareholders’ rights” provided for strengthening the protection of rights and interests of shareholders, especially minority shareholders, — said a member of the Committee on Budget and Economic Reforms E.Tulyakov. — Amendments fixed administrative, judicial and legal mechanisms ensuring its implementation. The norm of approval by the general meeting of shareholders, of a particular development strategy in the medium and long term allows all shareholders to influence the financial policy of the enterprise. Regular hearing of the report of the executive body and the supervisory council on the adopted measures taken to achieve the development strategy of the company will contribute to the openness and transparency of the company’s activities.

Participants of the meeting noted that today many corporatized enterprises, including joint ventures with foreign capital are organizing production process based on best practices of corporate governance. This allows encouraging attraction of foreign investment in joint stock companies, to increase the role of shareholders, including minority shareholders in the management of the company.

— The significance of the Law “On introducing amendments and addenda to some legislative acts of the Republic of Uzbekistan in connection with introduction of modern methods of corporate governance in joint stock companies” have become the norms, defining the requirements for training and increasing the professional level of managerial staff on the basis of cooperation with leading foreign educational institutions, as well as attracting highly qualified foreign managers for management positions in joint-stock companies, — said member of the Committee on Budget and Economic Reforms A.Umirov. — The legal act provides that the decision to appoint the head of the executive body to be taken, as a rule, on a competitive basis, which may be involved by foreign managers. There are an extension of preferences for foreign investors. Therefore, joint stock companies are exempted from paying the single social payment from the payroll of foreign workers involved in managerial staff. Income tax benefits of foreign experts, resulting from their activities as an administrative personnel are also included.

The above normative-legal acts will contribute to further improvement of economic activities of joint stock companies, the effective implementation of legal norms. Following the discussion, deputies adopted the laws in the second reading.

During the meeting of the first reading, deputies also extensively discussed the draft law “On introducing amendments and addenda to some legislative acts in connection with the adoption of the Law “On exchanges and exchange activity” in new edition. It is aimed at further development of financial sector, improving quality of market infrastructure.

— With formation of market mechanisms in our country, necessary conditions for the effective development of exchange activity has been created, — said member of the Committee on Budget and Economic Reforms S.Nomozov. — Gradual improvement of the normative-legal framework in this sphere contributes to its development. The draft law is aimed at the introduction of modern exchange technologies that raise the activity of domestic stock exchanges to the level of the world’s leading exchanges. It reflects the general principles and basic concepts of the state regulation of exchange activity, organization of trading, the rights and obligations of members of the exchange, organization, conduction and publication of the results of trading, a mechanism of ensuring guarantees of exchange trading members on exchange agreement, disclosure of information on the stock market and others. We believe that the adoption of this normative-legal act will create conditions for a unified law enforcement practice in issues of exchange activities, to achieve a balance of interests of participants of the exchange market, shareholders and the state, as well as harmonize national legislation with generally recognized international standards.

Following the discussions, deputies conceptually approved the draft law and adopted it in the first reading. Responsible committee was entrusted to prepare a document for consideration at the second reading, taking into account the received proposals.

At the meeting, deputies also considered other issues on the agenda.

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