INSTRUCTION OF CENTRAL BANK OF THE RUSSIAN FEDERATION

of September 12, 2018 No. 4901-U

About procedure for reduction by insurance company of the size of the authorized capital and size of own means (capital) in compliance with the requirement of Item 6 of article 25 of the Law of the Russian Federation of November 27, 1992 No. 4015-1 "About the organization of insurance case in the Russian Federation"

This Instruction based on Item 6 of article 25 of the Law of the Russian Federation of November 27, 1992 No. 4015-1 "About the organization of insurance case in the Russian Federation" (Sheets of the Congress of People's Deputies of the Russian Federation and the Supreme Council of the Russian Federation, 1993, No. 2, Art. 56; Russian Federation Code, 1998, No. 1, Art. 4; 1999, No. 47, Art. 5622; 2002, No. 12, Art. 1093; No. 18, Art. 1721; 2003, No. 50, Art. 4855, Art. 4858; 2004, No. 30, Art. 3085; 2005, No. 10, Art. 760; No. 30, Art. 3101, Art. 3115; 2007, No. 22, Art. 2563; No. 46, Art. 5552; No. 49, Art. 6048; 2009, No. 44, Art. 5172; 2010, No. 17, Art. 1988; No. 31, Art. 4195; No. 49, Art. 6409; 2011, No. 30, Art. 4584; No. 49, Art. 7040; 2012, No. 53, Art. 7592; 2013, No. 26, Art. 3207; No. 30, Art. 4067; No. 52, Art. 6975; 2014, No. 23, Art. 2934; No. 30, Art. 4224; No. 45, Art. 6154; 2015, No. 10, Art. 1409; No. 27, Art. 3946, Art. 4001; No. 29, Art. 4357, Art. 4385; No. 48, Art. 6715; 2016, №1, of Art. 52; No. 22, Art. 3094; No. 26, Art. 3863, Art. 3891; No. 27, Art. 4245, Art. 4294, Art. 4296; 2017, No. 31, Art. 4754, Art. 4830; 2018, No. 1, Art. 66; No. 18, Art. 2557; No. 32, of the Art. 5113) (further - the Law of the Russian Federation "About the organization of insurance case in the Russian Federation") establishes procedure for reduction by insurance company of the size of the authorized capital and size of own means (capital) in compliance with the requirement of Item 6 of article 25 of the Law of the Russian Federation "About the organization of insurance case in the Russian Federation" if the size of own means (capital) of insurance company determined according to Item 2 of article 25 of the Law of the Russian Federation "About the organization of insurance case in the Russian Federation" following the results of the last accounting period appears lower than the size of the paid authorized capital determined by the charter of insurance company.

1. The insurance company shall increase the size of own means (capital) to the size of the paid authorized capital determined by the charter of insurance company or, in case of impossibility of its increase, reduce the size of the paid authorized capital up to the size of own means (capital) with observance of requirements of Item 3 of article 25 of the Law of the Russian Federation "About the organization of insurance case in the Russian Federation" to the minimum size of the authorized capital of insurance company and make to the charter the changes connected with reduction of the size of the paid authorized capital, in time no later than 65 working days from the date of approach of one of the next events depending on what of them came earlier:

identification of the fact of reduction of size by insurance company of own means (capital) as a result of which own means (capital) appeared lower than the size of the paid authorized capital;

receipt of the instruction of the Bank of Russia by insurance company about elimination of violation regarding discrepancy of size of own means (capital) to the size of the paid authorized capital.

2. In case of increase in own means (capital) up to size at least the size of paid authorized capital the insurance company before the expiration, stipulated in Item 1 this Instruction, shall provide to the structural division of the Bank of Russia exercising supervision of activities of insurance companies:

the notification on reduction in compliance of size of own means (capital) and the size of the authorized capital with indication of sources of the means used for increase in own means (capital);

calculation of size of own means (capital) made according to the technique established by the Instruction of the Bank of Russia of September 3, 2018 No. 4896-U "About technique of determination of size of own means (capital) of the insurer (except for societies of mutual insurance)", the registered Ministry of Justice of the Russian Federation on September 24, 2018 No. 52233 (further - the Instruction of the Bank of Russia No. 4896-U).

The documents and data specified in paragraphs second and third this Item go insurance company to the Bank of Russia in electronic form with the .pdf expansion through private office of the participant of information exchange according to the Instruction of the Bank of Russia of November 3, 2017 No. 4600-U "About order of interaction of the Bank of Russia with credit institutions, not credit financial credit institutions and other participants of information exchange when using of information resources of the Bank of Russia, including private office by them", the registered Ministry of Justice of the Russian Federation on January 11, 2018 No. 49605, by means of use of the information resources posted on the official site of the Bank of Russia on the Internet.

3. The insurance company created in the form of limited liability company shall reduce the paid authorized capital by repayment of the shares belonging to insurance company and (or) way of reduction of nominal value of shares of all participants.

If repayment of the shares belonging to insurance company did not lead to reduction of the paid authorized capital of insurance company up to the size of own means (capital) or the insurance company has no shares for such repayment, the insurance company shall reduce nominal value of shares of all participants.

Reduction of the authorized capital of the insurance company created in the form of limited liability company shall be performed according to the requirements established by Items 1, 3 and 4 articles 20 of the Federal Law of February 8, 1998 No. 14-FZ "About limited liability companies" (The Russian Federation Code, 1998, No. 7, Art. 785; No. 28, Art. 3261; 1999, No. 1, Art. 2; 2002, No. 12, Art. 1093; 2005, No. 1, Art. 18; 2006, No. 31, Art. 3437; No. 52, Art. 5497; 2008, No. 18, Art. 1941; No. 52, Art. 6227; 2009, No. 1, Art. 20; No. 29, Art. 3642; No. 31, Art. 3923; No. 52, Art. 6428; 2010, No. 31, Art. 4196; 2011, No. 1, Art. 13, Art. 21; No. 29, Art. 4291; No. 30, Art. 4576; No. 49, Art. 7040; No. 50, Art. 7347; 2012, No. 53, Art. 7607; 2013, No. 30, Art. 4043; No. 51, Art. 6699; 2014, No. 19, Art. 2334; 2015, No. 13, Art. 1811; No. 14, Art. 2022; No. 27, Art. 4000, Art. 4001; 2016, No. 1, Art. 11, Art. 29; No. 27, Art. 4276, Art. 4293; 2017, No. 1, Art. 29; No. 31, Art. 4782; 2018, No. 1, Art. 65, Art. 70; No. 18, Art. 2557).

4. The insurance company created in the form of joint-stock company shall reduce the paid authorized capital by repayment of the shares owned by insurance company redeemed at shareholders and (or) by reduction of share par value.

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