The law regulating the activities of LLCs has been adopted in a new edition.

A new version of the law regulating the activities of limited liability companies in Uzbekistan has been adopted. This was reported by Zamin.uz.

This document will come into force three months after the official publication date. Prepared by the Ministry of Justice and signed by the head of state, this law introduces long-awaited significant reforms to the sector.

With the new law, modern corporate governance principles will be implemented in limited liability companies. The main goal of the document is to eliminate existing legal gaps and further strengthen the rights and guarantees of corporate participants.

In the development process of this law, which consists of a total of 71 articles, proposals from local and foreign experts, public opinions, and advanced international experiences were widely taken into account. Among the key innovations in the document, the clear and detailed regulation of the supervisory board's authority stands out.

Now, the mechanism for electing board members will be transparent. Additionally, the possibility for the board to make decisions through remote or absentee voting has been introduced.

This will help accelerate governance processes. Another important change is the introduction of specific fiduciary duties for supervisory board members and executive bodies.

This measure is aimed at increasing the accountability and transparency of management. Furthermore, changes have been made to the operating procedures of limited liability companies.

They can now operate not only on a licensing basis but also, in some cases, through permits or notification procedures. Additionally, the procedures for establishing branches and representative offices of companies, as well as opening subsidiaries, have been legally enshrined for the first time as separate legal norms.