THE MINIMUM AMOUNT OF SHARE OF FOREIGN CAPITAL IN JSC HAS BEEN ESTABLISHED
[Resolution of the President of the Republic of Uzbekistan dated 21.12.2015 No PP-2454 “On additional measures for attraction of foreign investors to joint stock companies”]
The Resolution of the President establishes the order where the share of a foreign investor in a joint stock company shall be at least 15 %. Before July 1, 2016 joint stock companies must amend the Charters and other internal normative documents for complying with the requirements of this Resolution.
The Resolution also provides that joint stock companies founded earlier which do not have the share of foreign investors in the amount of at least 15 % till July 1, 2016 must meet the newly adopted requirements, except for the following joint stock companies:
- Performing the activity in the sphere of production and primary processing of the strategic raw materials;
- Natural monopoly entities; and
- Suppliers of socially significant goods and services.
Joint stock companies fails to perform the requirements of this Resolution shall be subject to transformation to another legal form of organization (for example, LLC).
Also the Resolution establishes that from July 1, 2015 newly founded joint stock companies may only be organized (registered) if the latter has the share of foreign investors in the charter capital in the amount of at least 15 %, except for the cases, provided by the decisions of the President or the Cabinet of Ministers of the Republic of Uzbekistan.
The Resolution also provides for other provisions and amendments.