. Last Updated: 07/27/2016

Joint-Stock Law Delayed

Authorities have given companies scrambling to comply with the sweeping joint-stock company law a reprieve, extending the original July 1 deadline for another year, an official from the State Registration Chamber said Thursday.

The law, effective from Jan. 1, requires the tens of thousands of joint-stock companies in Russia to amend their company charters in accordance with the law -- from everything to electing the board of directors to advertising the general shareholders' meeting -- and then re-register with the State Registration Chamber.

The chamber, which oversees the registration process, conceded that it would be a Herculean task to push through the paperwork before the deadline.

"It had to happen," said Bruce Bean, of the law firm Coudert Brothers. "Thousands of companies have yet to register."

Companies failing to comply run the risk of being declared "invalid" and could face frozen bank accounts and having their goods stopped at the border.