State loosens merger rules for companies

The state is liberalizing its regulatory framework on corporate mergers, allowing for different forms of companies to merge, for all kinds of businesses and not just joint-stock companies to be split, and for personal companies to become joint-stock companies through a clearer legislative framework.

All this is included in the Economy Ministry bill “On Corporate Transformations,” which was put up for public consultation yesterday, a process that will be completed on October 25. If the bill is voted into law in time, its clauses will start applying as of January 1, 2019.

The idea behind the bill is to enhance flexibility so as to facilitate the development of business entities, especially in cases where two or more smaller companies want to merge into one, including cooperatives.