The legislative initiative proposes to establish that the limited liability company has the right to distribute its profits among the company’s participants no more often than once a quarter. At June 7 sitting of the NA Standing Committee on Economic Affairs, the draft law on Amending the Law on Limited Liability Companies (LLC) was debated in the first reading.
The key-rapporteur, the RA Deputy Minister of Economy Rafayel Gevorgyan noted that according to the current regulations, profit distribution can be carried out once a year, which limits the opportunity of distributing the generated profit among the participants of the company, thereby preventing the small and medium-sized enterprise (SME) entities from paying the part of the profit to their participants legally.
It was mentioned that with the adoption of the bill, an opportunity will be created for companies to distribute the generated profit among its participants more often, which corresponds to international experience and accepted business customs.
According to Rafayel Gevorgyan, the issue was debated with the representatives of small and medium enterprises, who responded positively.
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As a result of the debate, the draft was endorsed.
Let’s remind that the last question was moved to the first reading phase at the previous plenary sitting of the National Assembly at the suggestion of the key rapporteur, the RA Deputy Minister of Territorial Administration and Infrastructure Hovhannes Harutyunyan for the purpose of revision.
National Assembly of the Republic of Armenia
