The circulation of fractional shares will be eliminated and their future occurrence precluded by law
The problem with the appearance of new fractional shares will be resolved through the prohibition of the consolidation of shares for public companies and through an increase in the number of votes required for a decision on the consolidation of shares for non-public companies, with a threshold of 75% or 95% is under discussion. Additionally, the rounding down method shall be used while exercising pre-emptive rights that would have previously resulted in creating new fractional shares.
In addition, CBR proposes to align the nominal values of the existing fractional shares with the whole number ones. It is envisaged that the nominal value of whole number shares will be split up to one kopeck. The rest of shares with nominal values of less than one kopeck shall be subject to buy-back at a fair price along with the accumulation of the fractional parts on the treasury account.
Yuliya Shibukova
Relationship Manager
GSS Russia
yuliya.shibukova@unicredit.ru