EKVITA Legal Updates (July)

Legal Act: Amendments to the Labor Code; Civil Procedural Code; Family Code; Civil Code; Tax Code; Administrative Procedural Code and Code on Administrative Offences

Authority: Milli Majlis (Parliament)

Effective date: 25 July 2021

Source: https://president.az/articles/52542

 

In connection with the implementation of the provisions of the Law on Mediation amendments were made to a number of legal acts. 

Labour Code

The amendment specifies the mandatory requirement to attend a preliminary mediation session prior to applying to the court regarding individual labour disputes.

Civil Procedural Code 

According to the amendments, in case if the agreement contains a condition or clause requiring the participation of the parties in the mediation process prior to applying to the court on any dispute, the dispute may be submitted for court only after compliance with this rule.

A provision was also added to the Code providing for the compulsory consideration of commercial disputes, as well as disputes arising from labour and family relations in the initial mediation session before applying to the courts. Based on non-compliance of the parties with this rule, the judge may not accept the statement of claim.

Among the principles of litigation, a provision has also been added on the proposal by the court or the parties to resolve the dispute by mediation at any stage of the trial.

The court may complete the case based on a conclusion of the parties of a settlement agreement via mediation. If this is the case, the court issues a writ on approval of the settlement agreement and terminates the proceedings. 

Certain restrictions were also imposed on the institution of representation in court. Thus, the mediator who previously represented the interests of the parties in the mediation process cannot represent the same parties within court proceedings on the same dispute. Likewise, a judge who previously acted as a mediator within the same dispute may be recalled.

Moreover, a new chapter 40-7 was added to the Code, called “Proceedings for the approval of a settlement agreement concluded as a result of the mediation process”.

The chapter covers provisions regarding the filing of an application, its content, the procedure for its consideration, the enforcement of the settlement agreement (if applicable), the grounds for refusing to approve the settlement agreement, etc. 

Family Code

A new article 7-1 with a title “Resolution of disputes arising from family relations through mediation” has been added to the Code. This article establishes the mandatory requirement for parties to participate in a preliminary mediation session before applying to court regarding disputes arising from family relations.

The amendments also allow for the inclusion of mediation clauses in the marriage contract.

Civil Code

According to the amendment, implementation of the mediation process by the parties is one of the grounds for suspension of limitation periods

Tax Code

According to the amendment, the remuneration received for the provision of mediation services by individuals is classified as income from non-entrepreneurial activities.

Administrative Procedural Code

According to the amendment to the Code, the court or the parties may suggest a solution of an issue through mediation at any stage of the court proceedings. Administrative proceedings may be terminated by a settlement agreement concluded through mediation.

As it is applied in civil proceedings, a judge considering administrative dispute that previously acted as a mediator within in the same case may be recalled.

Code on Administrative Offences 

According to the amendment, the Сode defined the violation of the mediation legislation as an administrative offense and provided for appropriate sanctions (fines).

 

Legal Act: Amendments to the Decree on Further improvement of management in the field of export and investment promotion

Authority: President of the Republic of Azerbaijan 

Effective date: 24 July 2021

Source: https://president.az/articles/52561

 

According to the Decree, Charter and structure of AZPROMO were approved. 

Per the Charter, AZPROMO is a public legal entity engaged in export and investment promotion activities, providing a range of services to exporters and investors operating under the Ministry of Economy. 

The governing bodies of AZPROMO are a Supervisory Board consisting of 7 members and an Executive Director. The chairman of the Supervisory Board is the Minister of Economy of the Republic of Azerbaijan.

 

Legal Act: Law n the Use of renewable energy sources in the production of electricity

Authority: Milli Majlis (Parliament)

Effective date: 14 July 2021

Source: https://president.az/articles/52418

 

On 12 July Milli Majlis adopted a new Law On the use of renewable energy sources in the production of electricity.

The Law consists of 3 chapters: General provisions, Support for the use of renewable energy sources in electricity generation, technical and organizational requirements and information on the use of renewable energy sources in electricity generation. 

The Law determines the legal, economic and organizational basis for the use of renewable energy sources in electricity generation, as well as support mechanisms to promote electricity generation from renewable energy sources and regulates other related matters.

 

Legal Act: Decree on New division of economic regions in the Republic of Azerbaijan

Authority: President of the Republic of Azerbaijan 

Effective date: 8 July 2021

Source: https://president.az/articles/52389

 

After the liberation of the occupied territories of the Republic of Azerbaijan, President has signed a Decree aiming to satisfy the need for rearranging of the economic zones of the country and defining 14 newly organized zones:

  • Baku economic region (Baku)
  • Nakhchivan economic region (Nakhchivan, Babek, Julfa, Kangarli, Ordubad, Sadarak, Shahbuz and Sharur)
  • Absheron-Khizi economic region (Sumgayit, Absheron and Khizi)
  • Mountainous Shirvan economic region (Agsu, Ismayilli, Gobustan and Shamakhi)
  • Ganja-Dashkesan economic region (Ganja and Naftalan, Dashkasan, Goranboy, Goygol and Samukh)
  • Karabakh economic region (Khankendi, Agjabedi, Aghdam, Barda, Fuzuli, Khojaly, Khojavend, Shusha and Tartar)
  • Gazakh-Tovuz economic region (Agstafa, Gadabay, Gazakh, Shamkir and Tovuz)
  • Guba-Khachmaz economic region (Khachmaz, Guba, Gusar, Siyazan and Shabran)
  • Lankaran-Astara economic region (Astara, Jalilabad, Lerik, Lankaran, Masalli and Yardimli)
  • Central Aran economic region (Mingachevir city, Agdash, Goychay, Kurdamir, Ujar, Yevlakh and Zardab)
  • Mil-Mugan economic region (Beylagan, Imishli, Saatli and Sabirabad)
  • Sheki-Zagatala economic region (Balakan, Gakh, Gabala, Oguz, Sheki and Zagatala)
  • East Zangazur economic region (Jabrayil, Kalbajar, Gubadli, Lachin and Zangilan)
  • Shirvan-Salyan economic region (Shirvan city, Bilasuvar, Hajigabul, Neftchala and Salyan)

EKVITA Legal Updates (July)

Legal Act: Amendments to the Labor Code; Civil Procedural Code; Family Code; Civil Code; Tax Code; Administrative Procedural Code and Code on Administrative OffencesAuthority: Milli Majlis (Parliament)Effective date: 25 July 2021Source: https://president.az/articles/52542 In connection with the implementation of the provisions of the Law on Mediation amendments were made to a number of legal acts. Labour CodeThe amendment specifies the mandatory requirement to attend a preliminary mediation session prior to applying to the court regarding individual labour disputes.Civil Procedural Code According to the amendments, in case if the agreement contains a condition or clause requiring the participation of the parties in the mediation process prior to applying to the court on any dispute, the dispute may be submitted for court only after compliance with this rule.A provision was also added to the Code providing for the compulsory consideration of commercial disputes, as well as disputes arising from labour and family relations in the initial mediation session before applying to the courts. Based on non-compliance of the parties with this rule, the judge may not accept the statement of claim.Among the principles of litigation, a provision has also been added on the proposal by the court or the parties to resolve the dispute by mediation at any stage of the trial.The court may complete the case based on a conclusion of the parties of a settlement agreement via mediation. If this is the case, the court issues a writ on approval of the settlement agreement and terminates the proceedings. Certain restrictions were also imposed on the institution of representation in court. Thus, the mediator who previously represented the interests of the parties in the mediation process cannot represent the same parties within court proceedings on the same dispute. Likewise, a judge who previously acted as a mediator within the same dispute may be recalled.Moreover, a new chapter 40-7 was added to the Code, called “Proceedings for the approval of a settlement agreement concluded as a result of the mediation process”.The chapter covers provisions regarding the filing of an application, its content, the procedure for its consideration, the enforcement of the settlement agreement (if applicable), the grounds for refusing to approve the settlement agreement, etc. Family CodeA new article 7-1 with a title “Resolution of disputes arising from family relations through mediation” has been added to the Code. This article establishes the mandatory requirement for parties to participate in a preliminary mediation session before applying to court regarding disputes arising from family relations.The amendments also allow for the inclusion of mediation clauses in the marriage contract.Civil CodeAccording to the amendment, implementation of the mediation process by the parties is one of the grounds for suspension of limitation periods. Tax CodeAccording to the amendment, the remuneration received for the provision of mediation services by individuals is classified as income from non-entrepreneurial activities.Administrative Procedural CodeAccording to the amendment to the Code, the court or the parties may suggest a solution of an issue through mediation at any stage of the court proceedings. Administrative proceedings may be terminated by a settlement agreement concluded through mediation.As it is applied in civil proceedings, a judge considering administrative dispute that previously acted as a mediator within in the same case may be recalled.Code on Administrative Offences According to the amendment, the Сode defined the violation of the mediation legislation as an administrative offense and provided for appropriate sanctions (fines). Legal Act: Amendments to the Decree on Further improvement of management in the field of export and investment promotionAuthority: President of the Republic of Azerbaijan Effective date: 24 July 2021Source: https://president.az/articles/52561 According to the Decree, Charter and structure of AZPROMO were approved. Per the Charter, AZPROMO is a public legal entity engaged in export and investment promotion activities, providing a range of services to exporters and investors operating under the Ministry of Economy. The governing bodies of AZPROMO are a Supervisory Board consisting of 7 members and an Executive Director. The chairman of the Supervisory Board is the Minister of Economy of the Republic of Azerbaijan. Legal Act: Law n the Use of renewable energy sources in the production of electricityAuthority: Milli Majlis (Parliament)Effective date: 14 July 2021Source: https://president.az/articles/52418 On 12 July Milli Majlis adopted a new Law On the use of renewable energy sources in the production of electricity.The Law consists of 3 chapters: General provisions, Support for the use of renewable energy sources in electricity generation, technical and organizational requirements and information on the use of renewable energy sources in electricity generation. The Law determines the legal, economic and organizational basis for the use of renewable energy sources in electricity generation, as well as support mechanisms to promote electricity generation from renewable energy sources and regulates other related matters. Legal Act: Decree on New division of economic regions in the Republic of AzerbaijanAuthority: President of the Republic of Azerbaijan Effective date: 8 July 2021Source: https://president.az/articles/52389 After the liberation of the occupied territories of the Republic of Azerbaijan, President has signed a Decree aiming to satisfy the need for rearranging of the economic zones of the country and defining 14 newly organized zones:Baku economic region (Baku)Nakhchivan economic region (Nakhchivan, Babek, Julfa, Kangarli, Ordubad, Sadarak, Shahbuz and Sharur)Absheron-Khizi economic region (Sumgayit, Absheron and Khizi)Mountainous Shirvan economic region (Agsu, Ismayilli, Gobustan and Shamakhi)Ganja-Dashkesan economic region (Ganja and Naftalan, Dashkasan, Goranboy, Goygol and Samukh)Karabakh economic region (Khankendi, Agjabedi, Aghdam, Barda, Fuzuli, Khojaly, Khojavend, Shusha and Tartar)Gazakh-Tovuz economic region (Agstafa, Gadabay, Gazakh, Shamkir and Tovuz)Guba-Khachmaz economic region (Khachmaz, Guba, Gusar, Siyazan and Shabran)Lankaran-Astara economic region (Astara, Jalilabad, Lerik, Lankaran, Masalli and Yardimli)Central Aran economic region (Mingachevir city, Agdash, Goychay, Kurdamir, Ujar, Yevlakh and Zardab)Mil-Mugan economic region (Beylagan, Imishli, Saatli and Sabirabad)Sheki-Zagatala economic region (Balakan, Gakh, Gabala, Oguz, Sheki and Zagatala)East Zangazur economic region (Jabrayil, Kalbajar, Gubadli, Lachin and Zangilan)Shirvan-Salyan economic region (Shirvan city, Bilasuvar, Hajigabul, Neftchala and Salyan)

Tarix
18 Avqust 2021
Uyğun xəbərlər
29 Dekabr 2019

Company (LLC) registration in Azerbaijan (Innovation in registration of an LLC)

As EKVITA, we provide services in multiple areas of law (corporate, labor, migration, tax, litigation, etc.), as well as accounting, audit, business development and accompany our clients starting from early stages of their businesses. In this regard, putting it simply, I would like to speak about “opening the company”. That is, what is the most appropriate organizational form for starting a business in Azerbaijan, its advantages, necessary procedures in the registration process and etc. As you know, there are several organizational forms for the establishment of a company in the legislation. However, today I would like to tell you about the Limited Liability Company (LLC), which is the most acceptable and simple one among the rest in terms of procedural and legal requirements. If we refer to the definition of LLC – a limited liability company means company established by one or more persons (natural persons and (or) legal entity), the charter capital of which is divided into shares, the sizes of which are specified by the charter. As can be seen from mentioned definition, the legislation does not set limits regarding the number of founders of the LLC. In other words, the founder can be one or more persons, including a foreign citizen. It should be noted that in the case of foreign citizens, the legislative or documentation requirements are the same as for Azerbaijani citizens, i.e. there are no additional or special requirements. Another benefit of the LLC is the absence of any restrictions regarding its charter capital in the legislation. In other words, there is no minimum or maximum limit, the charter capital may be settled in any amount. Therefore, in many cases, when establishing the LLC, the charter capital is formed in the amount of 10-100 manats. It also should be noted that the registration process of the LLC is notable for its simplicity, and it would be appropriate to emphasize the innovative policy pursued by the Ministry of Taxes in this sphere. Thanks to it, Azerbaijan has established itself in 9th place in terms of the “Starting a Business” indicator among 190 countries this year, according to the annual Doing Business Report of the World Bank.Powered by Froala Editor

24 Yanvar 2020

EKVITA Qanuni Dəyişikliklər

Legal Act: Order on the implementation of renewable energy pilot projectsLegal Act: Law on the procedure for using the right of legislative initiative by citizens of the Azerbaijan RepublicLegal Act: Law on n minimum living wage in the Republic of Azerbaijan for 2020Legal Act: Law on the limit of the demand criteria in the Republic of Azerbaijan for 2020Legal Act: Decree on amendments to the Decree of the President of the Republic of Azerbaijan On ensuring the activities of the Agency for the development of small and medium-sized businesses of the Republic of AzerbaijanLegal Act: Law on amendments to the Law on Courts and JudgesLegal Act: Law on amendments to the Code of Administrative OffensesLegal Act: Law on amendments to the Tax CodeLegal Act: Law on amendments to the Law on State Forensic Examination ActivitiesLegal Act: Law on amendments to the Law on Health InsurancePowered by Froala Editor

28 Yanvar 2021

EKVITA Dekabr Qanuni Dəyişikliklər

Legal Act: Law on Amendments to the Law on Deposit InsuranceLegal Act: Law on Amendments to the Law on Full Deposit InsuranceLegal Act: Decree on Amendments to the Procedure for the Formation, Management and Use of the Fund to Support the Fight Against CoronavirusLegal Act: Law on Amendments to the Code of Administrative OffensesLegal Act: Law on Amendments to the Law on MediationLegal Act: Order on measures for the implementation of a pilot project for the construction of a wind farm with a capacity of 240 MWLegal Act: Law on the subsistence minimum in the Republic of Azerbaijan for 2021Legal Act: Law on Amendments to the Law on Environmental ProtectionLegal Act: Law on Amendments to the Labor CodePowered by Froala Editor