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Convention on multinational corporations

of March 6, 1998

The State Parties of this Convention, in dalneyshemstorona,

realizing provisions of the Agreement on creation of Economic union of September 24, 1993,

considering necessary ensuring structural adjustment of economies of the State Parties of the Commonwealth, acceleration of scientific and technical progress,

aiming to provide favorable conditions for maintenance and development of production cooperation between the companies of the State Parties of the Commonwealth,

confirming the aspiration to increase the export potential and competitiveness of the companies of the State Parties of the Commonwealth,

promoting carrying out active industrial policy, deepening of integration and investment attraction,

attaching importance to use of modern forms of interaction in the field of productive, investing, business and financial and credit activity,

being guided by the Agreement on assistance in creation and development of the production, commercial, credit and financial, insurance and mixed transnational associations of April 15, 1994,

agreed as follows:

Part 1. General provisions

Article 1 Legal basis of activities of multinational corporations

1. This Convention establishes general bases of cooperation of the Parties in the field of creation and activities of multinational corporations (further - corporation).

2. The relations which are not settled by this Convention are regulated by bilateral agreements between the Parties, and also their national legal system.

3. Regulation of questions of application of this Convention is performed by the state body of the Party authorized on that performing registration of corporation.

4. The parties agreed that maintaining databank about the created corporations from bodies of the Commonwealth of Independent States performs Interstate economic Committee of Economic union.

5. When forming corporation each of the Parties proceeds from need of protection of the property rights to the property of legal entities of other Party located in its territory.

6. The parties agreed that the corporation is created and is effective according to requirements of the legislation of the Parties.

Article 2 Concept "multinational corporation"

1. The parties recognize under concept "multinational corporation" the legal entity (set of legal entities):

the isolated property having in property, economic maintaining or operational management in the territories of two and more Parties;

formed by legal entities of two and more Parties;

registered as corporation according to this Convention.

2. In this Convention concept "multinational corporation" includes different transnational structures, including financial and industrial groups, the companies, concerns, holdings, joint businesses, joint-stock companies with foreign participation, etc.

3. The corporation has the right to perform the any kinds of activities which are not prohibited by the legislation of the Parties in the territories of the Parties.

Article 3 Members of corporation

1. Legal entities of any form of business, including from the third countries can be members of corporation.

2. The state, municipal and unitary enterprises can be members of corporation according to the procedure and on the conditions determined by the owner of their property.

Part 2. Forming and activities of corporation

Article 4 Creation and order of registration of corporation

The corporation is created voluntarily as on the basis of intergovernmental agreements, and other, not prohibited by the legislation of the Parties method.

The order of registration of corporation is determined by the legislation of the state - places of its registration.

Registration is confirmed by issue of the standard certificate containing full name and form of business of corporation with obligatory inclusion of the phrase in it "multinational corporation".

Article 5 Organizational project of corporation

In case of registration of corporation the organizational project of corporation is submitted.

The organizational project of corporation is understood as the document package provided to the authorized state body of the Party performing registration of corporation. The organizational project contains necessary data on the purposes and tasks, and also other data necessary for decision making on registration of corporation.

Article 6 Governing bodies of corporation

The management structure (structure of the highest, executive and control bodies) is determined in constituent documents of corporation, proceeding from the legislation of the state - place of registration of corporation.

Article 7 Concept "activities of corporation"

Understand the activities of participants and head enterprise (the central company) which are conducted according to constituent documents of corporation and the legislation of the Parties which legal entities are included into corporation, and its organizational project when using of the isolated assets as activities of corporation of the Party.

Article 8 State support and stimulation of activities of corporation

The parties can undertake on the parity basis the measures which are not contradicting the legislation of the Parties directed to stimulation of creation and activities of corporation including on:

transfer to trust management of corporation or to its participant of the blocks of shares of the participating companies of corporation belonging to the states;

offsetting of debt of the company which shares are implemented on investment tenders (biddings), in the volume of investment, provided by conditions of investment tender (bidding), for corporation buyer;

provision of the state guarantees for different attraction of investment resources, including with use of the mechanism of pledge;

cancellation of double taxation of members of corporation in the territory of the Parties where the corporation and its participating companies is effective;

implementation of duty-free importation and export of the equipment, products, works, services and capital flow between members of corporation;

provision to the participating banks of corporation performing in it investing activities, the privileges providing decrease in regulations of obligatory reservation and change of other standard rates for the purpose of increase in their investment activity;

provision to participating banks of corporation of investment loans through Interstate bank and other financial support for projects implementation of corporation.

In each case of the politician of the Parties in this question has individual character and it is determined by the corresponding regulation.


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