If prepared by the Ministry of justice the amendments are adopted, holders of less than 5% of the shares will lose the right to ask issuers for more information and for holders of service from 5% to 25% will be required upon request to prove the existence of a business purpose.
MOSCOW, 22 Jan. The Russian Ministry of justice has prepared amendments restricting the rights of minority shareholders: the owners of less than 5% of the shares will lose the right to ask issuers for more information and for holders of service less than 25 percent will have to justify their request, wrote in Friday newspaper “Vedomosti”. The authenticity of the document publication confirmed the representative of the Ministry. According to him, the project is discussed with the business and expert community.
Buy small number of shares often is used not as an investment but as a means to obtain information about the company. The rights of minority shareholders have been further expanded in September 2014. The proposal to limit minority shareholders ‘ rights was put forward in October 2015, the first Deputy Chairman of Bank of Russia Sergey Shvetsov. He called the strange attempts of minority shareholders to perform the audit function.
“Minority shareholders often abuse the right, write the authors of the project, and constant requests make it difficult for companies to operate. Therefore, officials propose to expand the information the Issuer was obliged to disclose to all shareholders”, — the newspaper writes about the project of the Ministry of justice. A similar provision was contained in the initiative Shvetsova.
To request data beyond that list, the owners of less than 5% of the shares can not, and the owners of the packages from 5% to 25% will be required upon request to prove the existence of a business purpose, specify “Vedomosti”. In addition, minority shareholders will not be available documents containing a trade secret, the newspaper said.
According to the publication, now any shareholder may request the company information, except the minutes of the meetings of the Board and of the accounting documents — they are only available for owners of more than 25% of the shares.