The sitting of the Sector Economy and Economic Policy Committee
The Committee considered with the II reading the drafts on Entrepreneurs; and Securities Market, introduced by the Deputy-Economic Minister, Irma Kavtaradze. The draft aims at re-regulation of the norms of the preferred purchase right of the shareholders in the law on Entrepreneurs and conferring the preferred purchase right to the rest of the partners upon sale of the share by the partner in limited companies.
The draft also envisages compliance of the rule of composition of the Audit Committee with international standards and improvement/specification of certain issues in the law. The remarks and comments expressed at the I reading are shared. The draft defines the Audit Committee as the sub-committee of the Board of Trustees of the Public Interest Person to be composed with the members of Board of Trustees solely. At that, at least one member shall be an independent person to be elected as the Chair of the Committee. The draft regulates the preferred purchase right of the share by the partner. The transitional provisions provide that the hereof regulation shall apply to the limited companies registered after enactment of the change.
The Audit Committee shall be chaired by the independent person as stipulated under the law on Entrepreneurs. The changes envisage the right on information about salaries and other incomes of the accountable Directors or members of Board of Directors and members of Board of Trustees conferred to any shareholder of the enterprise admitted to the stock exchange for trade.
The draft envisages obligation of inspection of such deals by the external auditor or certified accountant with participation of the persons concerned and the value of which constitutes 10% or over of the assets of the accountable enterprise or a smaller amount under the Articles thereof. I. Kavtaradze made elucidations and answered the questions. The Committee supported the drafts.