Law No. 400-1 On joint-stock companies.
Country
Type of law
Legislation
Date of original text
Date of latest amendment
Abstract
This Law establishes the legal framework for the creation, operation, reorganization, and liquidation of joint-stock companies, as well as the rights and obligations of shareholders. It defines key concepts such as open and closed joint-stock companies, their legal status as separate legal entities, and the principles of liability, according to which companies are responsible for their obligations with their own property, while shareholders’ risk is limited to the value of their shares. The Law also regulates the company’s name, seat, branches and subsidiaries, interaction with international treaties, and the basic foundations of corporate governance.
A substantial part of the Law focuses on capital structure, shareholders’ rights, and securities regulation. It sets rules for share issuance, types of shares (ordinary and preferred), dividend distribution, increases or reductions of share capital, and the protection of creditors. Shareholders are granted rights to participate in management, receive dividends, access company information, and challenge company decisions in court, while being obliged to pay for their shares and protect confidential information. Detailed provisions govern major transactions, related-party transactions, share buybacks, options, bonds, and conversions of securities, ensuring transparency and financial stability.
The Law further regulates the internal governance structure of joint-stock companies, defining the roles and powers of the general meeting of shareholders, supervisory board, executive bodies, audit bodies, and auditors. It establishes rules for accounting, reporting, disclosure, and document retention, as well as mandatory publication of key financial and corporate information. Finally, it sets comprehensive procedures for corporate reorganization (mergers, divisions, transformations, acquisitions) and liquidation, including creditor protection and asset distribution, ensuring legal certainty throughout the life cycle of a joint-stock company.
A substantial part of the Law focuses on capital structure, shareholders’ rights, and securities regulation. It sets rules for share issuance, types of shares (ordinary and preferred), dividend distribution, increases or reductions of share capital, and the protection of creditors. Shareholders are granted rights to participate in management, receive dividends, access company information, and challenge company decisions in court, while being obliged to pay for their shares and protect confidential information. Detailed provisions govern major transactions, related-party transactions, share buybacks, options, bonds, and conversions of securities, ensuring transparency and financial stability.
The Law further regulates the internal governance structure of joint-stock companies, defining the roles and powers of the general meeting of shareholders, supervisory board, executive bodies, audit bodies, and auditors. It establishes rules for accounting, reporting, disclosure, and document retention, as well as mandatory publication of key financial and corporate information. Finally, it sets comprehensive procedures for corporate reorganization (mergers, divisions, transformations, acquisitions) and liquidation, including creditor protection and asset distribution, ensuring legal certainty throughout the life cycle of a joint-stock company.
Attached files
Web site
Repealed
No
Source language
English
Legislation Amendment
No
Original title
TÜRKMENISTANYN KANUNY Paýdarlar jemgyýetleri hakynda.
Implements