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Companies might no longer need to maintain minimal net assets

Companies might no longer need to maintain minimal net assets

State Duma is planning to give up control over companies’ net assets/equity ratio. 

Currently, if equity exceeds net assets during more than 2 years in a row, the company is supposed to either decrease its share capital or find a way to increase net assets. Furthermore, if the decreased capital ends up being less than the legislated minimum level, the company can be forcefully liquidated.

The new amendment to the law implies lifting all obligations on assets/equity ratio.