Ministries of Taxation and Finance will Jointly Oversee Commercial Organizations

The Cabinet amended the ordinance providing for the reporting rules of business organizations. They have been effective from 27 May 2010, but a tiny part of the commercial entities comply with them, holding general meetings to approve the annual financial statements and publish them in the press.

The amendments provide for the transfer of a 10-day period to the Ministry of Finance of the annual financial statements and consolidated financial statements of the companies after they are submitted by a higher structure or founders. Such reports accompanied by an auditor's report are transmitted to the Ministry of Finance and commercial structures, more or less use of public funds.

Under the amendments, the list of companies is reported annually by the Ministry of Taxes to the Ministry of Finance prior to the 31st of March.

Commercial organizations will have to publish on their websites annual financial and consolidated financial statements for public inspection in an accessible form. These reports shall be published in print in the legislation.

Notably, the Civil Code provides for a general meeting of shareholders not later than the first half of the year. According to the practice, the companies hold general meetings to review the results of financial and economic activity in June. But according to the requirements of the "Rules of the provision and publication of the annual accounts and consolidated (combined) financial statements of commercial organizations", financial statements are subject to approval by shareholders not later than the 30th of April. Consolidated reports can be submitted to the shareholders or the parent entity before June 30. - 08D-