Grounds and procedure for decreasing in the charter capital of limited liability companies are amended

Limited liability companies and joint stock companies are obliged to provide access to the information on the value of the company net wealth to any person concerned.

Information on net wealth and its dynamics as well as on the reason of such dynamics shall be reflected in the annual report of a limited liability company.

However, information on net wealth of a joint stock company is excluded from the Unified State Register of Legal Entities.

The grounds for decrease in the charter capital shall be its excess over the value of net wealth at the end of two successive years (before such obligation arose in the event the charter capital exceeded the value of net wealth once).

The procedure for notification of the creditors about decreasing in the charter capital of a limited liability company was changed: the company is obliged to notify the registration authority about the decision made within three days from the date of decision and two times as frequent as once a month publish notice on decrease in the charter capital in a print media where information on the state registration of legal entities is being published.

Not later than within thirty days from the date of the latest publication of such notice, the creditor shall be entitled to claim early performance of the obligation by the company or termination of such obligation and reimbursement of losses. On specific grounds court may refuse satisfaction of such claims.

These changes shall become effective from 1 January 2012.

From 1 January 2013 a Unified Federal Register of the Information on the Facts Related to the Activity of Legal Entities is formed. It will be mandatory to enter records on the incorporation, reorganisation and liquidation of a legal entity, its exclusion from the unified state register of legal entities, increase or decrease in its charter capital, appointment or dismissal of the sole executive body, change address (location), value of net wealth of a joint stock company and - in the events provided for by law - of a limited liability company, on obtaining, suspension, restoration, re-issuance, cancellation, termination of license, introduction of supervision. The legal entity itself may also enter other records into the said register, save for those the access to which is restricted in accordance with law.

The Unified Federal Register of the Information on Bankruptcy shall become part to the Unified Federal Register of the Information on the Facts Related to the Activity of Legal Entities.