Tashkent, Uzbekistan, May 3
By Demir Azizov- Trend:
The amendments and additions in the law "On joint-stock companies and protection of shareholders' rights" came into force in Uzbekistan, the country's center for coordination and development of securities market said.
In accordance with these amendments, the increase in authorized capital of JSC from now is made solely through the issuance and placement of additional shares, the center said.
Prior to this, raising the authorized capital was possible through raising the nominal value of shares, as a rule, at the expense of reinvestment of JSC's profit that, in contrast to the issuance of additional shares, is not actually an income for shareholders.
As practice shows, the previous rule misleads the shareholders, especially minority, regarding the real value of their shares because the purchase and sale of shares and redemption of shares upon demand of shareholders are carried out at market value, regardless of their nominal value.
The amendments were adopted by the Legislative Chamber of the Oliy Majlis (lower house of the parliament) of Uzbekistan and approved by the Senate (the upper house) in late March 2016. The document, signed by the Uzbek president, was published May 2 in the central mass media outlets.