A meeting of the relevant Committee on the Procedure for maintaining the accounting system for shares in LLCs and ALCs was held

On 02 October, a regular meeting of the Committee on the Functioning of Post-Trading Infrastructure of Capital Markets was held, which approved the draft NSSMC Resolution “On Amendments to the Procedure for Maintaining the Accounting System of Shares of Limited Liability Companies and Additional Liability Companies”.

The main changes envisaged are as follows:
● the condition for the transfer of ownership of the share in a company — from the moment the share is credited to the account of the company participant opened in the share accounting system is specified;
● the procedure for transferring the servicing of a participant’s account from one depository institution or the Central Depository to another depository institution is simplified;
● the procedure for conducting transactions with participant accounts in the event of a change in the company’s authorized capital (increase or decrease), if this is not related to a change in the composition of participants is simplified;
● restrictions on a company’s decision to terminate the registration of shares in the event that the shares are pledged or held in an escrow account is introduced;
● the grounds for rejecting changes to the share accounting system are expanded, in particular in cases of lack of consent from the pledgee or the application of sanctions to the participant.

It should be noted that the draft decision will come into force after its approval at the Commission meeting. The document will be put to a vote in the near future.