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.