About The Peculiarities Of The Legal Status Of Joint Stock Companies (Folk)

Original Language Title: Об особенностях правового положения акционерных обществ работников (народных предприятий)

Read the untranslated law here: http://pravo.gov.ru/proxy/ips/?doc_itself=&infostr=x&backlink=1&fulltext=1&nd=102054513

RUSSIAN FEDERATION FEDERAL LAW on the peculiarities of the legal status of joint stock companies (folk) adopted by the State Duma June 24, 1998 the year approved by the Federation Council of the year July 9, 1998 (as amended by the Federal law of March 21, N 31-FZ), Article 1. Relations regulated by the present Federal Law 1. This federal law determines the peculiarities of creation and legal standing of joint-stock companies (folk) (hereinafter referred to as the people's enterprise), the rights and obligations of their shareholders, and also protects the rights and interests of the shareholders.
2. Public enterprises to apply the rules of the Federal law "on joint stock companies" of the closed joint-stock companies, unless otherwise stipulated by this federal law.
Article 2. How to create a national Enterprise 1. National enterprise can be created in the manner prescribed by this federal law, by converting any commercial organization, with the exception of State unitary enterprises, municipal unitary enterprises and public companies, employees of which belongs to less than 49 percent of the share capital.
Establishment of national enterprise in any other way are not allowed.
2. participants in the commercial organization in the manner prescribed by the legislation of the Russian Federation and the constituent instruments of the Organization of the order shall take the decision to transform it into a national enterprise.
3. participants of the commercial organization, voted against the conversion of commercial organizations in the national enterprise, have the right, within one month after the date of adoption of the decision on the redemption to claim their shares (shares) in whole or in part.
4. employees of a commercial organization, which adopted the specified in paragraph 2 of this article, the solution is not less than three quarters of votes from their list number, in the order established by the legislation of the Russian Federation agree to create a national enterprise.
If employees of a commercial organization did not agree to the establishment of a national enterprise, the decision of the parties to a commercial organization to constitute it as a national enterprise is considered as void.
5. If a commercial organization have agreed to create a national enterprise, the ones who decided to become a shareholder of the national enterprise and the commercial organization subject to transformation, sign an agreement on the establishment of a national enterprise.
If parties to a commercial organization and its employees who become shareholders of national enterprise, have not agreed on the terms of a Treaty on the establishment of a national enterprise referred to in paragraph 2 of this article, the decision shall be considered as void.
Article 3. Treaty on the establishment of a national enterprise, national enterprise Charter 1. Treaty on the establishment of a national enterprise, in addition to the information indicated in paragraph 5 of article 9 the Federal law "on joint stock companies", should contain the following: 1) information on the number of shares of national enterprise, which may possess at the time of the creation of national enterprise: every employee, including a member converted a commercial organization and decided to become a shareholder of national enterprise;
each participant converted a commercial organization that is not an employee;
every natural person who is not a party to the converted a commercial organization, and a legal entity;
2) monetary value of stocks (shares) converted a commercial organization;
3) conditions, terms and order of redemption of shares of the company people's national enterprise from its shareholders in order to comply with this federal law and the terms and conditions of the agreement on the establishment of national enterprise;
4) specifying the form of payment of shares of national enterprise or pattern of exchange of shares (shares) converted a commercial organization to rally national enterprise each shareholder at the time of the creation of national enterprise.
2. Treaty establishing the national enterprise must be signed by all the persons who have decided to become shareholders of national enterprise.
3. With the shareholders, any requirements on the redemption of shares, in accordance with paragraph 3 of article 2 of this federal law, as well as with the shareholders, whose number of shares people's business at the date of its creation was not relevant to the requirements of paragraph 1 of article 6 of this federal law and the terms of the Treaty on the establishment of a national enterprise, the Enterprise shall, within one month after the date of its establishment to enter into contracts for the sale of shares belonging to them. When the redemption price of the shares belonging to them may not exceed their fair market value.
4. the Statute of the national enterprise, in addition to the information referred to in paragraph 3 of article 11 of federal law "on joint stock companies", should contain information about: maximum share of national enterprise shares in the total number of shares which may own together individuals who are not employees of the national enterprise and/or legal persons;

maximum percentage shares of national enterprise in the total number of shares, which may hold one worker of the enterprise.
Article 4. National Enterprise authorized capital 1. National enterprise may issue only common shares. Reducing the number of votes to the owner of the shares of the national enterprise when voting on the principle of "one share, one vote" is not allowed.
Nominal value of one share of national enterprise is determined by the general meeting of shareholders of national enterprise (hereinafter referred to as the general meeting of shareholders), but may not be more than 20 per cent of the minimum wage established by federal law.
2. National Enterprise Workers must belong to number of shares nominal value of national enterprise of more than 75 per cent of its share capital.
National Enterprise workers, more than 45 per cent of the authorized capital stock of which is owned by individuals who are not its employees and/or legal persons must be the number of shares nominal value of national enterprise of more than 75 per cent of the share capital, no later than the end date for the tenth fiscal year after year creating national enterprise.
National Enterprise workers, from 35 to 45 per cent of the authorized capital stock of which is owned by individuals who are not its employees and/or legal persons must be the number of shares nominal value of national enterprise of more than 75 per cent of the share capital not later than on the date of the end of the fifth year after the year the establishment of finance national enterprise.
If within the time prescribed by the second and third subparagraphs of this paragraph, not national enterprise workers will belong to the above number of shares people's enterprise, national enterprise within one year must be transformed into some form of business entity. After expiration of the national enterprise shall be liquidated in the courts on the request of the authority responsible for the State registration of legal entities or an authorized State body or a body of local self-government.
3. national enterprise shares in the total number of shares, which may possess at the time of its creation the employee converted a commercial organization, should be equal to the percentage of payment for his labor in the total amount of compensation of employees for the preceding 12 months, national enterprise creation. Treaty on the establishment of a national enterprise might have a different procedure for determining the percentage shares of national enterprise in the total number of shares, which may possess at the time of its creation the employee converted a commercial organization.
4. Employee converted a commercial organization which does not have a sufficient number of shares (shares) converted a commercial organization to share by the number of shares of national enterprise, which should belong to him, in accordance with the Treaty on the establishment of a national enterprise, shall pay not less than 50 per cent of the value of the shares of the national enterprise, which should belong to him at the time of the creation of national enterprise.
5. national enterprise shares in the total number of shares which may own together at the time of its creation the participants converted commercial organizations that are not its employees, should be less than 25 per cent of the authorized capital of the national enterprise, if a Treaty on the establishment of a national enterprise for periods not exceeding established by paragraph 2 of this article provides otherwise.
6. national enterprise shares in the total number of shares, which may hold one worker of the enterprise at the time of its creation, does not exceed the maximum percentage referred to in paragraph 1 of article 6 of this federal law, if a Treaty on the establishment of a national enterprise for periods not exceeding established by paragraph 2 of this article provides otherwise.
7. the minimum share capital of folk Enterprise shall not be less than 1000 times the minimum wage established by federal law on the date of State registration of national enterprise.
8. Redemption of shares of national enterprise from the shareholders referred to in paragraph 3 of article 3 of this federal law, can only be achieved at the expense of profit national enterprise.
Article 5. Vesting of shares 1 national enterprise workers. National Enterprise annually in compliance with restrictions imposed by the federal laws and other legal acts of the Russian Federation shall have the right to increase its authorized capital by issuing additional shares for an amount not less than the amount of the net profit actually used on the accumulation during the reporting fiscal year.
2. additional shares of people's enterprises, as well as the people's treasury stock company from its shareholders, are distributed among all eligible employees of the national enterprise is proportional to amounts they pay for the reporting fiscal year.

3. For newly hired workers in the national enterprise covered by paragraph 2 of this article if they have been employed for not less than three months during the reporting fiscal year.
In the cases provided for in the Charter, national enterprise can be installed in any period of the employee's national enterprise, after which it can be given shares in the national enterprise referred to in paragraph 2 of this article, but this period may not be less than three months and more 24 months.
4. Procedure for determining the amounts of compensation of employees for national enterprise reporting fiscal year for the purposes set out in paragraph 2 of this article, as well as the order vesting the shares of national enterprise workers national enterprise approved by the general meeting of shareholders. The decision was adopted on the principle of "one shareholder, one vote".
5. the provisions of this article shall enter into force upon fulfillment of the conditions of the contract on the establishment of a national enterprise.
Article 6. Restrictions on the ownership and disposition of shares 1 national enterprise. One shareholder, national enterprise is its employee (hereinafter referred to as the worker-shareholder) may not own a number of shares nominal value of national enterprise of which exceeds 5% of the Charter capital of the people's enterprise.
Maximum shares people's enterprise, which may hold an employee-shareholder, installed the first subparagraph of this paragraph may be reduced by the Charter of the national enterprise.
If for any reason, including as a result of vesting of shares in accordance with article 5 of this federal law, an employee-shareholder number of shares people's Enterprise proved greater than the established maximum percentage of national enterprise Charter, national enterprise is obliged to redeem such employee-shareholder of those shares that form the specified excess, and the employee-shareholder is obliged to sell them to the people's business. Redemption is made on the nominal value of shares national enterprise within three months from the date of such education.
2. The employee-shareholder may sell or otherwise dispose of shares belonging to him national enterprise to another natural person and/or legal entity only in cases stipulated by this federal law.
3. Employee-shareholder has the right to sell at a bargain price part owned by him at the date of the financial year, the shares of the national enterprise within the next financial year, the shareholders of the national enterprise, with the exception of those referred to in paragraph 3 of article 8 hereof, or the most popular company, and in case of their refusal-national enterprise workers who are not shareholders.
The number of allowed to sell shares in a national enterprise employee-shareholder is set by the general meeting of shareholders, it may not exceed 20 per cent owned by the employee-shareholder national enterprise on a specified date.
4. National Enterprise is obliged to purchase from the employee-shareholder, resigned as having resigned employee-shareholder is obliged to sell the popular enterprise shares belonging to him national enterprise for their redemption value within three months from the date of dismissal.
5. By decision of the Supervisory Board of the national enterprise (hereinafter Supervisory Board) or in accordance with the Charter of the national enterprise having resigned employee-shareholder may sell at a bargain price within three months from the date of the dismissal of its shares national enterprise workers national enterprise, with the exception of those referred to in paragraph 3 of article 8 hereof.
In case if the sale-purchase transaction for any reason, shall enter into force the provisions of paragraphs 4 and 6 of this article. During this period, during which the national enterprise is obliged to redeem the resigned employee shareholder owned shares of national enterprise, increasing to six months.
6. National Enterprise is liable for monetary obligations arising from paragraph 3 of article 3 of this federal law and paragraphs 1, 4 and 5 of this article, in accordance with Article 395 of the Civil Code of the Russian Federation.
7. Having resigned employee-shareholder who disagrees with the redemption value of shares belonging to him national enterprise has the right to appeal in writing it in auditing (reference) National Enterprise Commission (hereinafter the Commission).
8. In case of insufficiency of the property of the worker-shareholder to meet creditors ' claims against him national enterprise is obliged to pay them by court order redemption value belonging to the employee-shareholder or parts thereof. While shares of national enterprise, the redemption value which paid lenders, moving to balance people's enterprise.

9. National Enterprise Shareholders-individuals who are not its employees, and legal persons shall have the right at any time to sell at a bargain price their shares primarily to shareholders of national enterprise, and in case of their refusal-the most popular enterprise or its employees, non-shareholders.
10. Paragraphs 4-6 of this article applies to the heirs of the deceased workers-shareholders.
11. the provisions of paragraphs 1 and 2 of this article shall come into force after the conditions of the Treaty establishing the national enterprise.
12. rules of article 75 of the Federal law "on joint stock companies" shall apply only to the national enterprise shareholders-individuals who are not it professionals and businesses.
Article 7. Redemption value of shares of the national enterprise and payment of dividends 1. Redemption value of all shares of national enterprise shall be determined quarterly on the methodology approved by the general meeting of shareholders, at this rate should not be less than 30 per cent of the net asset value and national enterprise should normally correspond to their market value.
The national company for the redemption of shares from national enterprise dismissed workers-shareholders, a special fund incorporation of employees that cannot be used for other purposes.
2. Dividends paid national enterprise not more often than once a year.
National enterprise was not entitled to adopt a decision on payment of dividends, if at the time of payment of dividends, it meets the criteria of insolvency (bankruptcy) in accordance with legal acts of the Russian Federation on Insolvency (bankruptcy) or if the symptoms may appear as a result of the payment of dividends;
the value of its net assets below the amount of its Charter capital and reserve fund or will be less than such amount as a result of the payment of dividends;
It is not purchased from its stockholders shares of national enterprise, whose share in the total number of shares of national enterprise does not comply with the requirements of article 6 of this federal law and the Charter of national enterprise.
Article 8. Sale of shares of national enterprise in its balance sheet 1. Shares of people's enterprises at its balance sheet, in whole or in part can be sold to its employees, as well as natural persons who are not its employees and/or legal persons.
The number of traded shares of national enterprise, the price at which they will be sold, the conditions and procedures for their sale are approved by decision of the general meeting of shareholders adopted by not less than three-fourths of the votes of the members present at the general meeting of shareholders.
2. sale of shares of national enterprise on its balance sheet, is carried out in accordance with this federal law, while the number of sold shares of national enterprise cannot exceed 50 per cent of the total number of shares of national enterprise intended for distribution among employees in accordance with paragraph 2 of article 5 hereof.
3. sale of shares of national enterprise on its balance sheet, Director General of the national enterprise, his deputies and assistants, members of the Supervisory Board and the members of the Control Commission shall not be permitted.
The Charter of national enterprise can be installed an additional list of sale of shares people's enterprise, which is not allowed.
Article 9. The number of employees and shareholders of national Enterprise 1. Average number of employees of the national enterprise may not be less than 51 man. By reducing the number of specified national enterprise shall, within one year to bring it into conformity with this paragraph or transform into another form of business entity.
Failure to do so within the specified period people's Enterprise shall be liquidated in the courts on the request of the authority responsible for the State registration of legal entities or an authorized State body or a body of local self-government.
2. the number of workers who are not shareholders of the national enterprise (hereinafter referred to as the workers-neakcionery) for the financial year shall not exceed 10 per cent of the national enterprise workers.
If the average number of employees-neakcionerov for the third full reporting fiscal year from the year of creation of national enterprise or for any subsequent financial year exceeds 10 per cent of the average number of employees of the national enterprise, the Enterprise shall, within one year of the Bill by the number of workers lead-neakcionerov in accordance with this paragraph or transform into another form of business entity.
If you do not meet this requirement within the specified period people's Enterprise shall be liquidated in the courts on the request of the authority responsible for the State registration of legal entities or an authorized State body or a body of local self-government.

3. When calculating the average number of employees of the national enterprise for the purposes of this federal law shall not be subject to accounting workers concluded contracts (contracts) during the execution of a particular work, as well as seasonal workers.
4. the number of shareholders of national enterprise shall not exceed five thousand. If it exceeds a specified number of national enterprise shall, within one year to bring it in conformity with this paragraph or transform into another form of business entity.
If you do not meet this requirement within the specified period people's Enterprise shall be liquidated in the courts on the request of the authority responsible for the State registration of legal entities or an authorized State body or a body of local self-government.
Article 10. The general meeting of shareholders 1. To the exclusive competence of the general meeting of shareholders include the following issues: 1) election of the Director General of the national enterprise, early termination of its powers, as well as establishing him wages;
2) election of the Chairman of the Control Commission, early termination of its powers, as well as establishing him wages;
3) definition of quantitative composition of the Supervisory Board, the election of its members and early termination of their powers;
4) determination of the maximum national enterprise shares in the total number of shares, which may collectively possess physical persons who are not employees of the national enterprise and/or legal persons;
5) determination of the maximum national enterprise shares in the total number of shares, which may hold one worker of the enterprise;
6) adoption of regulations on the control of the Commission;
7) setting the amount of remunerations and compensations to the members of the Supervisory Board;
8) to determine the amount of remunerations and compensations to the members of the Control Commission, as well as approval of the estimates for the implementation of its activities;
9) adoption of the method of determination of the redemption price of the shares of the popular enterprise;
10) approval of the Statute of the national enterprise, including changes in the size of the authorized capital of the national enterprise, or approval of national enterprise in the new edition;
11) approval of the annual balance sheet, profit and loss statement;
12) decision on reorganization of the national enterprise;
13) approving the priorities of national enterprise;
14) approval of the report of the Verification Commission;
15) decision on the liquidation of the national enterprise, appointment of a liquidation Commission and approval of interim and final liquidation balance sheets.
Action on sub-items 1-6, 8, 10, 12 and 14 of this paragraph shall be adopted on the principle of "one shareholder, one vote".
2. The matters referred to the exclusive competence of the general meeting of shareholders may not be transferred for solution of other administrations, national enterprise and powers of the general meeting of shareholders on other matters may be referred to his decision of not less than three quarters of votes from the total number of shareholders, the Supervisory Board or of the Control Commission for a certain period of time, but not more than one year. Decisions are made according to the principle "one shareholder, one vote".
3. procedure for decision by the general meeting of shareholders are approved by the general meeting of shareholders. The decision was adopted on the principle of "one shareholder, one vote".
4. the general meeting of shareholders solutions, as well as the voting results shall be communicated to all employees of the national enterprise not later than 15 days from the date of adoption of these solutions.
5. neakcionery workers may participate in the general meeting of shareholders with the right of deliberative vote.
6.2 per cent of shareholders or shareholders (a shareholder), which collectively owns at least 2 per cent of the shares of the national enterprise, not later than 30 days from the end date of the reporting financial year may offer no more than two issues for inclusion in the agenda of the annual general meeting of shareholders and, in the case of elections to the Supervisory Board and the Verification Commission to nominate in a number not exceeding the number of members of each of these bodies as well as nominations for the post of Director-General of the people's company and Chairman of the Control Commission.
7. in introducing the proposals for nominations for Director General of the national enterprise and the Chairman of the Control Commission, the members of the Supervisory Board and the members of the Verification Commission, including in the case of self-nomination, you specify the name of the candidate, and if the candidate is a shareholder, the number of shares owned by the national enterprise, as well as the names of the shareholders (shareholder) who bring these nominations, and the number of shares belonging to them people's enterprise.
8. The Supervisory Board is obliged to consider the proposals and decide on the inclusion in the agenda of the general shareholders ' meeting or on refusal of such inclusion, not later than 15 days after the end of the period specified in paragraph 6 of this article.

Questions made by the shareholders (shareholder) should be included in the agenda of the general meeting of shareholders, as well as the nominations are to be included in the list of candidates for voting for the election of General Director of national enterprise and the Chairman of the Control Commission, the members of the Supervisory Board and the members of the Verification Commission, except in cases where the shareholders (shareholder) has not complied with the deadline set in paragraph 6 of this article;
shareholders (a shareholder) do not own under paragraph 6 of this article, the number of votes;
the data submitted in accordance with paragraph 7 of this article are incomplete;
proposals that do not meet this federal law and other normative legal acts of the Russian Federation.
9. The reasoned decision of the Supervisory Board of the refusal to include the issue in the agenda of the general meeting of shareholders or nominees in the list of candidates for voting for the election of General Director of national enterprise and the Chairman of the Control Commission, the members of the Supervisory Board and the members of the Control Commission shall be sent to the shareholders (shareholder) who question or have submitted proposals, not later than three days from the date of its adoption.
10. the decision of the Supervisory Board of the refusal to include the issue in the agenda of the general meeting of shareholders or nominees in the list of candidates for voting for the election of General Director of national enterprise and the Chairman of the Control Commission, the members of the Supervisory Board and the members of the Control Commission may be appealed to the Control Commission, whose decision on the matter is required for the execution of the Supervisory Board.
11. the ballot at a general meeting of shareholders, in addition to the information laid down in paragraph 3 of article 60 of the Federal law "on joint stock companies", the voting principle must be specified on every issue-the "one share one vote" or "one shareholder, one vote".
In the case of voting for the election of the Director-General of the people's company and Chairman of the Control Commission, the members of the Supervisory Board and the members of the Verification Commission voting paper must contain a brief curriculum vitae of the candidates.
12. Term of the returning Board of the general meeting of shareholders shall be established by decision of the general meeting of shareholders is not less than three-fourths of the votes of the members present at the general meeting of shareholders. The decision was adopted on the principle of "one shareholder, one vote".
Article 11. Extraordinary general meeting of shareholders 1. Extraordinary general meeting of shareholders is carried out by decision of the Supervisory Board on his initiative, at the request of the Control Commission, as well as at the request of at least 10 per cent of shareholders or at the request of the shareholders (shareholder) who own at least 10 percent of the shares of the people's business as at the date of presentation of the claim.
The decision of the Supervisory Board shall be determined by the extraordinary general meeting of shareholders (joint presence or absentee voting). The Supervisory Board may not change the format of its decision of an extraordinary general meeting of shareholders, if the requirement of the Control Commission, as well as a specified shareholder (s) to hold an extraordinary general meeting of shareholders provides an indication of the shape of his spending.
2. the convening of the extraordinary general meeting of shareholders at the request of the Control Commission, at the request of not less than 10 per cent of shareholders or at the request of the shareholders (shareholder) who own at least 10 percent of the shares, national enterprise is carried out by the Supervisory Board not later than 45 days from the date of presentation of the request to hold an extraordinary general meeting of shareholders.
The Supervisory Board may not amend the wordings of the issues on the agenda of the extraordinary general meeting of shareholders convened on the request of the Control Commission, at the request of not less than 10 per cent of shareholders or at the request of the shareholders (shareholder) who own at least 10 percent of the shares of the people's business as at the date of presentation of the claim.
3. Within 10 days from the date of presentation of the claim verification Commission, demands at least 10 per cent of shareholders or the demands of shareholders (shareholder) who own at least 10 percent of the shares of national enterprise, to convene an extraordinary general shareholders ' meeting, the Supervisory Board should decide to convene an extraordinary general shareholders ' meeting or on refusal of its convening.
The decision on refusal to convene an extraordinary general meeting of shareholders at the request of the Control Commission, at the request of not less than 10 per cent of shareholders or at the request of the shareholders (shareholder) who own at least 10 percent of the shares of national enterprise, can only be accepted if: not met the established laws of the Russian Federation, the procedure for submission of a request for the convening of the general meeting of shareholders;

shareholders (shareholder), requiring the convening of extraordinary general meeting of shareholders is not referred to in paragraph 1 of this article, the number of votes;
None of the issues proposed for inclusion in the agenda of the extraordinary general meeting of shareholders that are not assigned to its competence.
Article 12. The Supervisory Board of the National Enterprise 1. The Supervisory Board exercises overall supervision of national enterprise and can take decisions on all matters, except the issues attributed to the competence of the general meeting of shareholders, as well as the issues under this federal law and the Charter of national enterprise within the competence of the Director-General of the national enterprise.
2. exclusive competence of the Supervisory Board include the following: 1) convocation of annual and extraordinary general meetings of shareholders, except as provided by paragraph 6 of article 55 of the Federal law "on joint stock companies";
2) adoption of the agenda of the general meeting of shareholders;
3) definition the date of drawing up of the list of shareholders entitled to participate in the stockholders meeting and other matters falling within the competence of the Supervisory Board in accordance with the provisions of Chapter VII of the Federal law "on joint stock companies" and associated with the preparation and holding of the general meeting of shareholders;
4) determine the amount of dividend on shares people's enterprise and order of payment;
5) the use of the Reserve Fund and other funds national enterprise;
6) approval of internal documents of the national enterprise, national enterprise Charter;
7) creation of branches and opening of representative offices of national enterprise.
3. Matters referred to the exclusive competence of the Supervisory Board, may not be transferred to the Director-General of the people's enterprise solutions.
The powers of the Supervisory Board on other matters assigned to it in accordance with this federal law and the Charter of national enterprise may be transferred by decision of the general meeting of shareholders to the Director-General of the national enterprise or Control Commission for a certain period of time, but not more than one year.
4. The Chairman of the Supervisory Board is included in the ex officio Director national enterprise, national enterprise unless the Charter provides otherwise.
5. The Supervisory Board shall be elected for a term of three years.
6. The Director-General of national enterprise, his deputies and assistants may not exceed 30 per cent of the membership of the Supervisory Board.
7. When a roster size of national enterprise more than one thousand people and in the presence of more than 2 per cent of the workers-neakcionerov one-neakcionerov, workers representative, elected by the general meeting of employees-neakcionerov must be a member of the Supervisory Board.
8. meetings of the Supervisory Board shall be convened by the Chairman of the Supervisory Board on his initiative, at the request of a member (members) of the Supervisory Board, at the request of the Control Commission, at the request of not less than 5 per cent of shareholders or at the request of the shareholders (shareholder) who own at least 5 percent of the shares of national enterprise.
9. Address every Supervisory Board meeting shall be communicated to the national enterprise workers.
Article 13. The Director General of the National Enterprise 1. The day-to-day activities of national enterprise is carried out by the Director General of the national enterprise, which is the sole executive body of the national enterprise.
The competence of the Director-General of the national enterprise includes all governance issues ongoing activities of national enterprise, except for the issues under this federal law and the Charter of national enterprise to the competence of the general meeting of shareholders or to the Supervisory Board.
2. The Director shall be elected by the national enterprise by the decision of the general meeting of shareholders for a period defined by the Charter of the national enterprise, but not more than five years and shall be eligible for re-election an unlimited number of times.
3. Remuneration of the Director General of the national enterprise for the reporting financial year may not be more than 10 times the average wage per employee people's enterprise over the same period.
Article 14. Audit (control) the Commission National Enterprise 1. The Control Commission exercises control over financial and economic activity of the national enterprise, observance of the rights of shareholders, as well as for compliance with the rules of the internal labour schedule national enterprise.
2. the members of the Control Commission may not simultaneously be members of the Supervisory Board.
3. the members of the Control Commission shall have the right to participate in the meetings of the Supervisory Board with the right of deliberative vote, as well as attend the meetings held by the Director-General of national enterprise.
4. the members of the Supervisory Board may not participate in the election of members of the Control Commission.

5. the powers of the Control Board, its composition, the procedure for the election of its members, their term of Office, the manner of work and decision-making at meetings shall be established in the regulation on the control of the Commission.
The decision of the review panel are binding on Governments national enterprise.
Control Commission decisions may be reviewed by the general meeting of shareholders or to appeal in court.
6. The Chairman of the Control Commission and members of the Control Commission shall be elected from among the workers-shareholders on the date specified by the Charter of the national enterprise, but not less than five years.
Article 15. To exercise control over financial and economic activity of the National Enterprise 1. Revision of financial and economic activity of the national enterprise is carried out according to the results of the work of the national enterprise for the reporting financial year, as well as at any other time by decision of the Supervisory Commission, adopted at its initiative, the decision of the general meeting of shareholders, the decision of the Supervisory Board, at the request of at least 10 per cent of shareholders or at the request of the shareholders (shareholder) who own at least 10 percent of the shares of national enterprise.
2. Revision of financial and economic activity of the national enterprise is usually by independent auditors on the basis of the Treaty. Composition of Auditors is subject to mandatory consultation with the Commission.
3. payment of services of Independent Auditors on the verification (audit) of financial-economic activities carried out within the national enterprise estimates for the implementation of the activities of the Oversight Commission.
4. the Control Commission shall have the right to be acquainted with the documents relating to all parties, national enterprise activities as well as provide necessary explanations, orally and in writing.
5. the decision of the Commission of a major transaction, the subject of which is the property whose cost totals from 15 to 30 per cent of the book value of the assets of the people's business as at the date of adoption of the decision to commit the transaction, was adopted unanimously by the Supervisory Board (this does not take into account the votes of the retired members of the Supervisory Board) and is coordinated with the Control Commission.
If the Supervisory Board unanimity on the question of committing a major deal is not reached or a decision on it has not agreed with the Commission, the matter can be decided only by the general meeting of shareholders.
The decision of the Commission of a major transaction, the subject of which is the property whose cost totals more than 30 per cent of the book value of the assets of the people's business as at the date of adoption of the decision on such transactions, shall be adopted by the general meeting of shareholders is not less than three-fourths of the votes of the members present at the general meeting of shareholders.
6. Persons interested in committing a popular enterprise transaction, recognized by the Director-General of national enterprise, members of the Supervisory Board and the members of the Verification Commission, shareholders (shareholder) who own at least 20 percent of the shares of national enterprise, if the said persons, their spouses, parents, children, brothers and sisters, are party to such transaction or participate as a representative or intermediary;
own not less than 20 percent of the voting shares (shares) of a legal entity which is a party to such transactions or participating in it as a representative or intermediary;
occupy posts in the administration of the legal entity which is a party to such transactions or participating in it as a representative or intermediary.
These persons are obliged to bring to the attention of the Supervisory Board and members of the Control Commission: information on legal persons in which they own alone or together with its affiliated entities for no less than 20 percent of the voting shares (shares);
legal persons in the administration which they occupy;
about known or suspected transactions committed by them in which they can be recognized by stakeholders.
If these individuals had not provided this information, the Commission is obliged to bring the issue of non-compliance with this requirement, for the consideration of the general meeting of shareholders.
Article 16. The entry into force of this federal law 1. This federal law enters in force from October 1, 1998 year.
2. invite the President of the Russian Federation and to entrust the Government of the Russian Federation to bring its legal acts in compliance with this federal law.
3. (deleted in accordance with federal law N March 31-FZ), the President of the Russian Federation, b. Yeltsin, Kremlin, Moscow, N July 19, 1998 115-FZ