08 Apr COVID-19 and extension of corporate deadlines in Russia
The COVID-19 pandemic has dramatically changed life all around the world in many ways. It has also lifted up issues with corporate governance in relation to Russian Limited Liability Companies and Joint Stock Companies.
One of the regulating documents, issued by Russian authorities is the Federal Act # 115-FZ, adopted, published and entered into force on April 07th, 2020. The act provides with the following changes to corporate governance that shall be taken into account during the COVID-19 circumstances:
1. Internal audit of Public Joint Stock Companies shall be done by January 01st, 2021, instead of July 01st, 2020;
2. Decrease of net assets of Joint Stock Companies and Limited Liability Companies, as the result of 2020 financial year, below the share capital will not lead to the obligation to decrease the share capital or liquidate the company;
3. Deadlines for meetings of shareholders have changed:
- a) Annual meetings of shareholders of Joint Stock Companies in 2020 shall take place not later than on September 30th, 2020, instead of standard deadline June 30th;
- Annual meetings of shareholders of Limited Liability Companies in 2020 shall take place not later than on September 30th, 2020, instead of standard deadline April 30th;
6. Deadlines for submission of consolidated financial reports, for the entities obliged to submit such reports, have changed:
- Annual consolidated financial reports in 2020 shall be submitted not later than 180 days after the end of the reporting period, instead of standard 120 days;
- Interim consolidated financial reports in 2020 shall be submitted not later than 150 days after the end of the reporting period, instead of standard 60 days.
The aforementioned amendments are examples of measures adopted by Russian authorities due to the COVID-19 crisis.