The Commission of the Cabinet of Ministers approved amendments to the law on share building

The Commission of the Cabinet of Ministers approved amendments to the law on share building


The amendments proposed by the construction Ministry of the Russian Federation, introduce proper use of funds participatory construction. Regulatory authorities will have additional powers to monitor the use of funds of citizens.

MOSCOW, 8 Dec. The draft amendments to the law on share building, designed in the Ministry of construction of the Russian Federation, approved by the Commission of the government of Russia on legislative activities, according to a press release of the Ministry.

“The bill passed the legislative Commission. We expect that it will be considered at a future meeting of the Russian government” — presented in the words of the Deputy head of the Ministry Natalia Antipin.

The report also notes that the amendments will significantly increase the level of transparency of developers. They also suggest maintaining a Single electronic register of real estate developers, engaged in attracting funds from the shareholders.

The current legislation allows to attract funds of citizens, even those companies that are nearing bankruptcy or liquidation. Developers may not have equity. The bill tightens the requirements to construction companies, in particular to the size of their own capital, added the report.

Also the amendments introduce the target use of means of participants of share building, and regulatory authorities will have additional powers to take greater control over target use of means of citizens, the article reads.

“In the legal field it is proposed to introduce an alternative mechanism of attraction of means of citizens – special escrow accounts in banks. We studied international experience and looked subject, how this process is regulated in other countries, and came to the conclusion that only through the introduction of the scheme “shareholder – Bank – developer” you can solve this problem” — are words in the message Antipin.