New Legislative Proposal for Limited Liability Companies and Joint-Stock Companies
The Government of the Republic of Armenia has introduced a new legislative proposal that aims to amend the Civil Code of Armenia, as well as the laws on “Limited Liability Companies” and “Joint-Stock Companies.” The purpose of the proposal is to introduce a mechanism for convertible loan agreements, which will allow companies to repay loans with shares or equity instead of money.
Key Points of the Legislative Changes
- Convertible Loan Agreements: Parties can agree to repay loans with equity. Legal conditions and regulations will be established.
- Civil Code of Armenia: New definitions and mechanisms for convertible loans.
- Law on Limited Liability Companies: Changes regarding the terms of agreements.
- Law on Joint-Stock Companies: Regulations for loan repayment through shares or equity.
- Tax Code of Armenia: Amendments for tax accounting and declarations.
Objectives and Outcomes
- Investment Promotion: New opportunities for investors.
- Financial Stability: Legal predictability and stability.
- State Budget: No additional financial costs anticipated.
These changes aim to improve Armenia’s investment environment and provide new business development opportunities.
For more details, visit the e-draft.am project