The RA Law “On Non-Governmental Organizations” (HO-32-N) was adopted on 16 December, 2016, at the same time corresponding changes were made in the Civil Code of Armenia according to which the articles relating to unions of legal entities were repealed.
The problem was that practically difficulties arose during the procedure of re-registration of the unions of legal entities as non-governmental organizations.
In particular, in accordance with the current legislation, the Civil Code of the Republic of Armenia and the requirements stipulated by the “Law on State Registration of Legal Entities, Separate Subdivisions, Institutions and Individual Entrepreneurs” the Unions of Legal Entities had to submit, inter alia, to other documents, a transfer act on property rights and obligations, as well as the decisions of the authorized bodies of all legal entities member of the Union of Legal Entities. In addition, the deadline for reorganization as a non-governmental organization was 4 February of this year.
The Armenian Lawyers’ Association NGO, in partnership with the Agora Central Europe (NGO based in the Czech Republic), the Armenian Centre for Democratic Education-CIVITAS, the International Centre for Human Development, the SME Cooperation Association and the Union of Communities of Armenia is implementing the EU funded “Commitment to Constructive Dialogue Project”.
In the scope of the program, the Armenian Lawyers’ Association, considering the disproportionate burden for the unions of legal entities, initiated a process of legislative reforms. In particular, in September 2017, the organization submitted a draft for legislative changes to the RA Ministry of Justice. Later, on 24 November, 2017 organized a seminar-discussion on the issues arising during the process of re-registration of the unions of legal entities as non-governmental organizations. All stakeholders participated in the seminar discussion, among them Mr. Gagik Mkrtchyan, advisor to the Head of the State Register of Legal Entities of the Ministry of Justice of the Republic of Armenia and representatives of the main actors in the field of ULEs. After this discussion, the Armenian Lawyers’ Association presented recommendations for legislative amendments to the RA National Assembly and the Ministry of Justice of the Republic of Armenia as well.
In addition, the Armenian Lawyers Association, currently provides free legal advice to non-governmental organizations and assists them in registering their statutes in new edition, is well aware of the risks arising in the sector, and always raises the issue.
As a result of the above mentioned, the National Assembly and the Ministry of Justice have drafted the “RA Law on Making an Addendum to the RA Civil Code,” the “Draft Law on making Addendum in the RA Law on State Registration of Legal Entities, Separate Subdivisions, Institutions and Individual Entrepreneurs”, the “RA Law on Making an Addendum and Amendments to the RA Civil Code,” and the “Draft RA Law on Making Amendments to the RA Law on Non-Governmental Organizations”. As a result, these draft laws were adopted completely on 16 January, and the following recommendations and suggestions made by the Armenian Lawyers’ Association were approved as well, and thanks to which the process of reorganization of the unions of legal entities will be significantly simplified.
• The term of reorganization of the Union of Legal Entities as a non-governmental organization has been prolonged for two years, till 2020,
• The requirement for an act of transfer of property, other property rights and obligations has been removed;
• The requirement to make decisions by the competent authorities of all legal entities member of the Union of Legal Entities has been removed;,
• In case of change of the location of the non-governmental organization, the requirement to inform it to the Agency of the State Register of Legal Entities of the Republic of Armenia has ceased.
The Armenian Lawyers’ Association reports that they will present in a more affordable manner the reorganization process of ULEs. We invite all interested parties to attend the Central Office of the Armenian Lawyers’ Association on 25 January at 11:00. Please confirm your participation by sending a letter today by 16:00.
