Law Glossary

Corporate Law

Founding Agreement – An agreement that establishes the basic terms and structure of a company in Armenia, equivalent to the Articles of Association.

Corporate Charter – Document that dictates the governance and corporate structure of a company in Armenia.

Registered Capital – The total amount of capital that is fully paid up and registered, as required for Armenian companies.

Shareholder’s Register – An official list maintained by Armenian companies that records the details of all its shareholders.

General Meeting – The highest governing body of a company in Armenia, responsible for major decisions.

Supervisory Board – A body within some Armenian companies charged with overseeing and advising the executive board.

Annual Financial Statements – Required yearly reports detailing the financial activities and status of a company, as mandated by Armenian corporate law.


Employment Law

Individual Labour Contract – The agreement between employer and employee that specifies the terms of employment, conformant to the Armenian Labour Code.

Collective Agreement – A contract for labor conditions negotiated between employers and a group of employees in Armenia.

Severance Package – Compensation packages required under Armenian law for terminating employees under certain conditions.

Labour Dispute – Conflicts between employers and employees or between employees themselves, addressed through mediation or court in Armenia.

Work Book – An official document kept by employers in Armenia that records an employee’s work history and labor activities.

Minimum Wage Regulation – Laws defining the minimum hourly rate of pay for workers in Armenia.

Employment Discrimination Law – Legal protections against discrimination in the workplace based on race, gender, age, religion, or nationality.


Contract Law

Contractual Obligation – Duties that parties are legally bound to perform under a contract, as recognized by Armenian law.

Valid Contract – A contract that meets all the legal requirements set forth under Armenian contract law.

Termination Clause – A provision in a contract that allows for the contract to be ended before its natural conclusion under specified conditions.

Contract of Sale – A legal agreement where one party (the seller) transfers the ownership of goods to another party (the buyer), as defined in Armenian law.

Liquidated Damages – Predetermined damages agreed upon in a contract, should a party breach the contract as per Armenian contractual regulations.

Arbitration Clause – A clause in a contract that requires the parties to resolve disputes through arbitration rather than through litigation.

Express and Implied Terms – Terms that are either explicitly stated or implicitly understood in a contract under Armenian jurisprudence.


Securities Law

Prospectus Requirements – Mandatory disclosure documents required by Armenian law to be provided by companies during public offerings.

Market Abuse Regulation – Regulations preventing illegal practices in financial markets in Armenia such as insider trading or market manipulation.

Public Float – The portion of shares of a publicly traded company that is in the hands of public investors as defined under Armenian securities law.

Securities Commission – The regulatory body that oversees securities markets in Armenia, responsible for compliance with financial regulations.

Trading License – A license required to trade securities on the Armenian stock market, issued by the appropriate Armenian authority.

Securities Offering – The act of issuing securities to raise funds from the market, strictly regulated by Armenian securities law.

Insider Information – Material non-public information about a company that could provide an unfair advantage in investment decisions, regulated under Armenian law.


M&A Law

Acquisition Agreement – An agreement where one company purchases another or purchases a significant portion of another’s shares or assets in Armenia.

Merger Approval – The required approval from relevant authorities for mergers under Armenian law to ensure compliance with competition laws.

Asset Purchase – A type of business transaction in Armenia that involves buying the assets, rather than the shares, of a company.

Due Diligence Report – A comprehensive appraisal of a business undertaken by a prospective buyer, especially to establish its assets and liabilities in Armenia.

Cross-Border Merger – Mergers involving entities from different countries, including Armenia, regulated under specific legal frameworks to handle international aspects.

Divestiture – The process of selling off subsidiary business interests or investments in Armenia, often as part of strategic business restructuring.

Hostile Takeover – An acquisition attempt opposed by the target company’s management but pursued directly by the shareholders or through the accumulation of shares in the open market.

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