The Ministry of Finance recommends moderation

The Ministry of Finance has published the draft of the amendments to several laws concerning the purchase of large shares of stocks of open joint-stock companies (OJSC). The proposed amendments oblige non-public companies to conduct preliminary control when taking over joint-stock companies. Besides, the “connected person” term is introduced, which includes, inter alia, entities affiliated, controlled and under control. Also, it is suggested that the number of the shareholders, to whom the offer to purchase the shares if the JSC is being taken over must be made, should be expanded by inclusion of the privileged shareholders.

Advocate Alexander Bolomatov, Partner of the Law Firm "YUST", speculates: “It does not matter to the shareholders, in how many pockets those shares lie. It only matters that several interconnected parties hold them. As soon as such a group starts acting in a systematic and coordinated way, the other shareholders should be entitled to buy the shares back at their market price”.