Azerbaijan offers expansion of majority shareholders’ rights
Azerbaijan, Baku, Aug. 6 / Trend A.Akhundov /
Azerbaijan proposed the introduction of control over open joint stock companies.
This is stated in the draft law on Making Addenda and Amendments to the Civil Code of the country, prepared by the State Securities Committee.
Under the bill, if an individual or legal entity owns at least 75 percent of the shares of open joint stock company, granting the right to vote, to purchase shares or convertible into shares of other securities, it must necessarily make a proposal to their respective owners.
The mandatory offer is sent to the relevant executive authority exercising the state regulation in the securities market and stock company within a period not exceeding 15 days from the date of acquisition of such amount of shares.
Acquisition of shares and convertible into shares of other securities of corporations included in the list of securities quoted on the Stock Exchange must be made at a price not lower than the highest market price determined on the Stock Exchange during the last year before the date of dispatch of the proposal. If the company's shares are not included in the list of securities quoted on the Stock Exchange, the price of acquisition is determined by an independent appraiser appointed by the decision of the supervisory board. The independent appraiser shall not be a person related to the JSC.
In the event that an individual or legal entity is the holder of at least 95 percent of the shares of open joint stock company, providing the right to vote, it has the right to put forward the requirement for compulsory acquisition of remaining shares or convertible into shares of other securities.