Amendments to the Law of Georgia on Entrepreneurs
The Amendments to the Law of Georgia on Entrepreneurs, dated February 19, 2016, introduce the following novelties:
- Timeline for Profit Distribution (effective from May 16, 2016) – if the limited liability companies (LLC) and the Joint Stock Companies (JSC) make a decision on profit distribution, the payment of dividends shall take place within the term defined by the respective company charter, but not later than within 9 months of adopting such decision.
- Preemption rights in course of Capital Increase - the shareholders are entitled to participate in the LLC capital increase in proportion to their shares, by ensuring the capital is paid up within the term defined by the Shareholders’ Meeting, unless otherwise agreed unanimously by the shareholders. Failure of any of the partners to exercise such right either fully or partially, may result in new allocation of shares after the capital increase.
Full version found here: