Shareholders’ rights along SPOs shall be better protected. By Ksenia Liskina, Relationship Manager, GSS Russia
The Central Bank of Russia (CBR) has published a draft of law with amendments on pre-emptive rights on shares’ acquisition to the law "On Joint Stock Companies". Shareholders will receive the right to acquire any type of share placed for secondary public offering, in proportion to the number of shares held by them.
This initiative is aimed to protect shareholders, especially minority shareholders, from their share’s dilution and unfair dividend payment distribution.
The current provisions of the Federal Law "On Joint Stock Companies” guarantee shareholders only the pre-emptive right to purchase newly offered shares of the respective category of their own shares.
Ksenia Liskina
Relationship Manager
GSS Russia