Civil Code amendments to increase entities' transparency
MOSCOW, April 5 - RAPSI. The new amendments to the Civil Code will make corporate activities more transparent, said State Duma Deputy Pavel Krasheninnikov, who heads the lower house's civil, criminal, arbitration and procedural legislation committee.
Entities establishment and liquidation as well as corporate governance will be easier, the deputy said.
Under the new legislation, a "corporation" means an entity whose founders, participants and members are entitled to take part in its management, i.e. have membership rights.
The bill expands and unifies the list of corporate participants' rights and obligations, such as the rights to participate in corporate activities management, to obtain information and to challenge expulsion.
Meanwhile, "unitary entity" means a legal entity whose founders are not its participants and do not enjoy membership rights.
President Dmitry Medvedev stated on Monday that he had submitted Civil Code amendments regarding fundamental civil rights institutions to the State Duma.
Medvedev said it took a long time to develop a well-balanced draft law "that will not damage the fundamentals of the Civil Code."
He also expressed hope that the amended code will improve the investment climate in Russia.
The amendments have been under development for several years. Still they are expected to be up to date as 15 years have passed since the first part of the Civil Code was adopted.