LAW OF THE REPUBLIC OF ARMENIA

of January 31, 2003 NZR-512

About auditor activities

Accepted by National Assembly of the Republic of Armenia on December 26, 2002

Chapter I. General provisions

Article 1. Subject of regulation of the Law

This Law establishes bases of implementation of auditor activities in the Republic of Armenia and regulates the relations connected with auditor activities.

Article 2. Law coverage

Operation of this Law extends to the auditor activities performed in the territory of the Republic of Armenia.

Article 3. Regulatory legal acts about auditor activities

Regulatory legal acts about auditor activities consist of this Law, other laws containing the regulations concerning auditor activities, the orders of the Government of the Republic of Armenia, and also other legal acts adopted by the authorized Government of the Republic of Armenia state body (further - authorized body).

Article 4. The basic concepts used in the Law

The stated below concepts are used in this Law in the following sense:

auditor service - audit and (or) auditor monitoring;

person performing audit – auditing organization;

auditing organization - the legal entity rendering auditor services;

the audited face - the legal entity, organization or the individual entrepreneur to whom auditor services are rendered;

the auditor - the physical person who received qualification of the auditor.

Article 4.1. Affiliates

1. In understanding of this Law legal entities are considered affiliated if:

a) one of them by the right of vote disposes 20 and more percent of shares (share, shares, further - the share), granting voting power, another, either owing to the participation or according to the agreement signed between these persons has opportunity to predetermine solutions of another;

b) the participants (shareholders) disposing of more than 20 percent of shares of one of them granting voting power, or having opportunity to predetermine its decisions the different way which is not forbidden by the law or members of their families have the right to dispose directly or indirectly (including based on purchase and sale agreements, trust management, joint activities, the order or other transactions) more than 20 percent of shares of other person granting voting power or have opportunity to predetermine solutions of the last the different way which is not forbidden by the law;

c) the chairman of the board, the member of council, the chairman of management, the member of management, the chief executive, his deputy for the line of financial management, the head of financial division, the accountant or person responsible for financial accounting or creation of financial statements, the head, the member of division of internal audit or the chairman of audit committee, the member of audit committee or the member of other similar body (further – the member of body of board or person fulfilling similar duties) one of them, and also one of members of their family at the same time acts as the member of any body of board or person fulfilling similar duties, other person.  

2. In understanding of this Law physical persons are considered affiliated if they are member of the same family or conduct general economy or joint business activity.

3. In understanding of this Law physical persons and legal entities are considered affiliated if this physical person or the member of his family acts:

a) the participant disposing of more than 20 percent of shares of this legal entity;

b) person having opportunity to predetermine decisions of the legal entity the different way which is not forbidden by the law;

c) the member of body of government of this legal entity or the other person fulfilling similar duties.

4. In understanding of this Law the child, the spouse, the parent, the sister, the brother, the grandfather, the grandmother, the grandson, the spouse and children of the brother, the sister, and also the child, the parent, the sister, the brother, the grandfather, the grandmother, the spouse's grandson are considered as the member of the same family.

Article 5. Use of the words "audit", "auditor", "auditor"

1. The words "audit", "auditor", "auditor" or their derivatives can use in the name only the organizations which obtained the license for rendering auditor services (further - the license), except as specified when follows from sense of its use that the word is not connected with auditor activities.

Disclaimer! This text was translated by AI translator and is not a valid juridical document. No warranty. No claim. More info