Corporate Law at Armenia
Sure! Here’s an overview of Corporate Law in Armenia:
Corporate Law in Armenia
Armenia has a modern legal framework regulating companies and corporate activities, aligned with international standards and harmonized with European legal principles, reflecting its aspirations for economic integration and foreign investment.
Legal Framework
1. Civil Code of the Republic of Armenia
The Civil Code contains fundamental provisions governing commercial entities, including company formation, governance, and dissolution.
2. Law on Limited Liability Companies (LLCs) (2002, amended)
Regulates the formation, operation, and dissolution of LLCs.
LLCs are the most common corporate form in Armenia.
3. Law on Joint-Stock Companies (JSCs) (2001, amended)
Governs joint-stock companies, both public and private.
Establishes rules on shares, shareholders’ rights, and corporate governance.
4. Law on Securities Market
Regulates securities issuance, trading, and oversight.
Overseen by the Central Bank of Armenia and the Securities Committee.
Types of Business Entities
Limited Liability Company (LLC): Most popular form, liability limited to contributions.
Joint-Stock Company (JSC): Suitable for larger enterprises; shares can be publicly traded if a public JSC.
Other forms: Partnerships, sole proprietorships, cooperatives, etc.
Key Corporate Governance Features
Shareholders’ Rights: Protection of minority shareholders, rights to participate in meetings, dividends, and access to information.
Management: Board of directors or management body oversees company operations.
Reporting and Disclosure: Companies must maintain accounting records and submit annual reports.
Mergers and Acquisitions: Governed by the Civil Code and specific laws, with rules on disclosure and shareholder approval.
Foreign Investment
Armenia encourages foreign investment and provides a legal framework that facilitates company registration by foreigners.
Foreign companies can operate as branches or subsidiaries.
Recent Developments
Armenia continues to reform corporate law to improve the business environment and align with EU standards, including enhanced transparency and shareholder protection measures.
Summary
Armenia has a well-established corporate legal framework with key laws governing LLCs and JSCs.
Legal provisions protect shareholders and regulate corporate governance.
The country supports foreign investment with streamlined company formation processes.
Ongoing reforms aim to improve transparency and align with international best practices.
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