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In Russia, "unscrupulous individuals" may be barred from company management

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In Russia, "unscrupulous individuals" may be barred from company management

The Ministry of Economic Development has drafted amendments to the law on joint-stock companies which propose not to allow and exclude dishonest persons from the management bodies of joint-stock companies, the Vedomosti newspaper reported.

To the dishonest persons according to Ministry of economic development they are: convicted persons with unexpunged or outstanding conviction for intentional crime, persons with guilty verdict of court, those who were brought to administrative responsibility more than twice in the course of bankruptcy of legal entities. Also, individuals who were brought to subsidiary liability, disqualified or denied registration of a legal entity will not be able to join the board of directors and hold the post of director, CEO, board member and director, even temporarily.

"If before the actual appointment (election) of a candidate for position <...> the public company shall refuse to appoint (elect) the candidate for position <...>," - quotes the publication theses from the bill.

If such facts are revealed after the appointment, such a candidate will have to be dismissed within a month.

The experts explained to the publication that the bill applies only to public joint stock companies (PJSC), as well as those traded on the stock exchange or not listed on the stock exchange, but having the name PJSC.

It is noted that in the near future the document will be posted for public discussion and after its completion it will be submitted to the government.

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Author: Karina Kamalova

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