AMENDMENTS CONCERNING THE LEGAL PERSONS ARE MADE TO THE CIVIL CODE
Legal persons will face amendments that are adopted to the Civil Code of Azerbaijan Republic. The main change sets the rules for the concluding deals with the related persons of legal entities.
As related persons are considered the head and members of the board of directors (supervisory board) and executive body of the legal entity; head of structural division of legal entity (branch office, representative office, organization etc.); any person directly or indirectly holding at least 10 per cent or more in the charter capital of a legal entity; a legal entity participating in a share capital of at least 20% and others.
If the value of the deal, which is intended to be settled with a related party, constitutes 5 percent or more of the legal entity's assets, the deal is concluded with the opinion of an independent auditor, attributed by a legal entity and a simple majority vote of the general meeting of the legal entity's participants. However, if the transaction value, which is intended to be settled by an entity, constitutes up to 5 percent of the legal entity's assets, that transaction is accepted by the general meeting of its participants, the board of directors (supervisory board) or the executive body in accordance with the charter of the legal entity.
Source link: The Law of the Azerbaijan Republic “On Making Amendments to the Civil Code of the Republic of Azerbaijan”
