Specifics of regulation of corporation relations in 2020
The Bank of Russia informs securities issuers and corporate relations participants on the enactment on 7 April 2020 of Federal Law No.
1. The deadline for holding annual general meetings of shareholders has been be extended: in 2020 they are to be held by 30 September.
2. In 2020, public companies whose securities have been admitted to organised trading will be entitled to acquire their own shares according to a simplified procedure compared to the one prescribed by the Law on Joint-stock Companies. In case economic consequences of the coronavirus pandemic have had a considerable effect on the weighted average share price, a public company may acquire such shares on a stock exchange on the basis of public buy orders through a broker. These actions must be performed in line with the provisions of Law
3. The drop in the net assets value of joint-stock companies below the size of their authorised capital at end-2020 will not lead to consequences stipulated by the Law on Joint-stock Companies, i.e. they will not have to include an additional section in their annual statements, nor will they be required to make a decision on the reduction of the authorised capital or on liquidation.
4. The deadline set for securities issuers to disclose annual and interim consolidated financial reporting (financial reporting, if the issuer does not unite with other organisations to set up a group) has been extended in line with the Article 30 of the Law on the Securities Market. The 2019 annual reporting is to be disclosed by issuers by 28 July 2020, and the interim reporting for the first six months of 2020 — by 28 December 2020. Moreover, the requirement on disclosing reporting within three days from the date of the auditor’s opinion (document containing the findings of the audit examination) will remain in force.
Additionally, the Bank of Russia Board of Directors is going to make a decision on extending the deadline for securities issuers to disclose in 2020 an issuer’s report, lists of affiliated entities, and annual accounting (financial) statements.
5. The deadline for public joint-stock companies to perform actions requiring the involvement of a considerable number of employees and an interaction with third-party contractors has been extended to 1 January 2021. These actions include clarification of the status of public companies not corresponding to the properties set forth by Cl.1 Art. 66.3 of the CC RF and creation of an internal audit framework in public companies.
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13.04.2020 00.00.00