The draft federal law On Public Companies in the Russian Federation and Introducing Amendments to Certain Legislative Acts of the Russian Federation, was developed by the Ministry of Economic Development in response to Presidential Instruction No. Pr-1793 of July 17, 2012.
The draft law would introduce into Russian legal system a legal form of a unitary non-profit organisation known as “public company”, created by a Government decision or under federal law, which operates in the interests of the state and society.
The draft law would place the same restrictions on employees of public companies and employees of state-owned companies and corporations.
The draft law is designed to address the problem of using temporarily available funds in public companies. Thus, the draft law proposes investing temporarily available funds of public companies based on the principles of repayment, profitability and liquidity of the acquired assets (investment objects). In accordance with the draft law, the list of eligible assets (investment objects), the terms and conditions of investing temporarily available funds, the procedure and mechanism for overseeing their investment, the procedure governing transactions to invest temporarily available funds, the forms of reporting on the investment of temporarily available funds and the rules for their provision and disclosure are to be determined in the manner prescribed by the Government.
The draft law will help to create uniform rules for public companies and corporations, identify common approaches and requirements for the establishment, registration, organisation of work, reorganisation and liquidation of state-owned companies and corporations, and will lead to more advanced forms of direct government involvement in economic relations.
The draft law will be considered at a meeting of the Government.
