7 Dec 2022 15:34

Right of companies to hold AGM in absentia to be extended to 2023 - head of State Duma committee

MOSCOW. Dec 7 (Interfax) - The right of Russian companies to hold annual general shareholders' meetings in absentia in 2020-2022 will be extended to 2023, Sergei Gavrilov, head of the State Duma Committee on Property, Land and Property Relations, told reporters.

An amendment to this effect has been proposed to the second reading in the government bill on extending the "sanctions" corporate rules throughout 2023. The bill has been prepared for the second reading, the committee's press service said.

"It has been proposed ... to provide the possibility of holding general shareholders' meetings in absentia in 2023," Gavrilov was quoted as saying in the State Duma committee's statement.

The Law on Joint Stock Companies prohibits holding a general shareholders' meeting in absentia when the agenda includes matters on electing a respective company's board of directors (supervisory board) and/or audit commission, approving an auditor, and approving the annual report and/or the annual accounting (financial) statements. General meetings of LLC participants must also only be held in person on matters to approve annual reports and/or annual balance sheets.

However, the ban has been suspended for three years because of the coronavirus pandemic, and Russian companies may use the absentee format.