NEWS AND EVENTS
May 27, 2013
Legislative Chamber adopts several laws in first reading
Legislative Chamber of Oliy Majlis of Uzbekistan held a session to discuss several drafts laws in the first reading.
MPs considered a draft law “On pledge registrar”, which determines legal mechanisms of creation of single pledge registrar. The draft law is directed at creating foundation for accounting pledged property and preventing their illegal sale or alienation.
The pledge registrar will be single information database, which will gather information on rights of individuals and legal entities to pledged property and their changes.
The document was developed to further develop financial-banking system, expand competition and improve quality of services in financial market, develop modern market infrastructure, etc.
The most important task of the law is to further improve procedure of credit issuing process, expand access of credit financing to small and private businesses, decrease risks of commercial banks at issuing loans under pledge.
It was said that the draft law was developed based on legislations of the United States, Canada, Great Britain, China, Australia and other countries.
MPs also considered a draft law “On joint stock companies and protection of rights of shareholders” in new edition. The draft law is directed at determining authorities, rights and responsibilities of corporate management and control bodies, raising rose of supervisory councils, general meetings and revision commission. It also expands access of shareholders and investors to information on activities of the joint stock company.
The draft law improves issues related to forming joint stock company, its charter capital, market price of securities, placement of securities, authorities and responsibilities of management, etc.
The document envisages creation of minority shareholders committee in management of the company, which will be elected by shareholders.
The committee will consider addresses of minority shareholders and protect their rights.
It will also improve protection of interests and rights of investors. It includes measures on improving transparency of the companies and disclosure of information. It also tightens responsibility of management for conducted deals and operation.
MPs also discussed a draft law “On introduction of changes and amendments to some legislative acts of Uzbekistan in connection with adoption of the law “On introduction changes and amendments to law “On joint stock companies and protection of the rights of shareholders”.
The draft law was developed to harmonize legislation of Uzbekistan with the law “On joint stock companies and protection of the rights of shareholders” in new edition. It amends Civil Code, Land Code, Law “On securities” and others.
After the discussions, MPs passed all three documents in the first reading. They entrusted corresponding committee to prepare laws to second reading.
Legislative Chamber of Oliy Majlis of Uzbekistan considered other issues of its jurisdiction.