It is proposed to make amendments to the Law on Joint Stock Companies and to introduce a new form of contract, which is based on the example of similar American regulations. At the sitting of the NA Standing Committee on Economic Affairs on March 13, the RA Acting Deputy Minister of Economy Rafayel Gevorgyan said, noting that such contracts are called SAFE contracts in English, that is, a simple agreement to obtain statutory capital for the future.
The Committee debated the draft law on Making Addenda to the Law on Joint Stock Companies in the first reading.
“This is, in fact, a typical form of a certain contract, which has had a very important role for start-up organizations in the USA. This regulation will contribute to our start-up organizations having the appropriate opportunity to attract ‘angel’ investments,” the rapporteur explained.
It is expected that with the adoption of the draft, a simple and understandable toolkit will be created for making foreign investments in companies at the initial stage of development – startups. The legal regulation of that toolkit will promote the attraction of investments and investors, the clear regulation of legal relations arising between companies in the initial stage of development, stability and predictability.
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The Committee endorsed the draft.
National Assembly of the Republic of Armenia
