Indecon Supports Uzbekistan in Reforming Company Law to Strengthen Capital Markets and Shareholder Protection

Indecon is advising the State Assets Management Agency (SAMA) of Uzbekistan on the reform of the Joint Stock Companies law. The current Law “On Joint-Stock Companies and Protection of Shareholders’ Rights” dates back to 2014. The mandate for reform was assigned to SAMA in November 2022 through a presidential decree.

The main objectives of the reform are:

• Improving the legal framework for joint-stock companies
• Increasing the efficiency of state-owned enterprises
• Alignment with international standards (OECD)
• Strengthening capital market financing through shares and bonds
• Enhancing the protection of shareholders
• Strengthening oversight of management bodies, in particular the executive body
• Ensuring reliability of legal transactions

Currently, there are 611 joint-stock companies in Uzbekistan. The state holds shares in about one third of them (234), many of which are scheduled for initial or follow-on public offerings (IPOs/FPOs).

To carry out the reform, a dedicated working group was established, with Indecon consultants appointed as members. They developed a reform concept for the law, prepared position papers on priority reform issues, and conducted workshops as well as online consultations on detailed drafting proposals. The first draft of the revised law is scheduled to be submitted to the Cabinet of Ministers on December 1.