May 2, 2019

Introduced a new procedure for nomination of candidates for members of the supervisory boards

In accordance with the Resolution of the Cabinet of Ministers dated April 26, 2019 No. 356 “On Measures for Further Improvement of the System for the State Assets Management”, a new procedure was introduced for nomination of candidates of economic entities in the part of the state share:

–  candidates for members of supervisory boards (councils of banks), or for positions of the head and deputy head of the executive body of economic entities with a state share in the charter capital (fund) of 50% or more shall be agreed by the Prime Minister or his revelant deputies and advisers;

–  candidates for members of the supervisory boards (councils of banks) of economic entities with a state share in the charter capital (fund) up to 50% – shall be agreed by the relevant secretariats of the Cabinet of Ministers.

The above procedure does not apply to economic companies if the founders (shareholders) of these economic entities are local executive authorities and state unitary enterprises.

In accordance with the Resolution members of supervisory boards (councils of banks) of economic entities who are heads or deputy heads, as well as employees of state organizations are paid remuneration and (or) reimbursable expenses related to fulfillment of their functions within the quarter in the amount of no more than 50 times of the minimum monthly wage (approximately US$1200).

The Resolution allocated personal liability to deputies and advisers of the Prime Minister of the Republic of Uzbekistan for ensuring nomination of qualified candidates for members of the supervisory boards of economic entities.