Under the amended laws, there are a number of significant changes, as follow:
Free to conduct any lines of business:
Pursuant to the current Law on Enterprise regime, an enterprise may only conduct the business activities registered in its enterprise registration certificate. Under LOE 2014, an enterprise is free, in principle, to conduct any business activities which are not prohibited by the law. In case a business activity is conditional, the enterprise must satisfy the required conditions before carrying out such activity.
Free to decide the content of the corporate seal: Pursuant to LOE 2014, an enterprise may decide the content of its corporate seal and register the seal with the relevant authorities. Despite the debates of abolishing the seal between lawmakers, an enterprise is still required to use an official seal during its operation and be responsible for such usage.
More than one legal representative may be appointed: Under LOE 2014, an enterprise is permitted to appoint more than one legal representative. The rights and obligations of the legal representatives are equal before the law and the enterprise is required to register its legal representative with licensing authorities.
Decision making mechanism: LOE 2014 introduces a significant change relating to the company's decision making mechanism. With respect to a limited liability company (with two or more members) the required quorum to convene a meeting of the members' council reduces to presence of member(s) representing at least 65% of the charter capital, instead of 75% as set out the current law. Additionally, a resolution of the members' council shall be passed through the collection of written opinions if it is approved by members representing at least 65% of the charter capital as opposed to 75% in the current regime.
Regarding a joint stock company, the quorum of the general assembly of shareholders is only 51% pursuant to the LOE 2014, instead of 65% in the current regime. Where a meeting is unable to be conducted for the first time because the 51% quorum, the meeting may be convened for a second time with a quorum of 33% as opposed to 51% in the current regime.
