LEGAL UPDATE
June 2026
PART I. TAX SECTOR
1. On making additions and amendments to the Tax Code of the Republic of Armeni.
PART II: PUBLIC SECTOR
1. Decision of the Government of the Republic of Armenia No. 845-N of 18 June 2026 On
Making Amendments to Decision No. 1317-N of the Government of the Republic of
Armenia of 5 October 2017.
PART III: CORPORATE SECTOR
1.On Amendments and Supplements to the Law on Joint Stock Companies.
PART IV. INSOLVENCY SECTOR
1. Adoption of the Insolvency Code.
PART V. COMPETITIVE SECTOR
1. Law of the Republic of Armenia, Adopted on 16 April 2026, on Making Amendments and
Additions to the Law of the Republic of Armenia "On Advertising".
PART I. TAX SECTOR
(This section of legal updates includes legal news related to the tax sector for June 2026)
1. On making additions and amendments to the Tax Code of the Republic of Armenia
Name of the legislative act
Decision No. 197-N of 26 June 2012 of the State Revenue Committee under the Government of the Republic of Armenia "On Approving the Form of the Registration Application for the Personal Data of Employees, Individuals Receiving Contractual Income, Interns, and Apprentices Undergoing Vocational Training."
https://www.arlis.am/hy/acts/99219
Change status:
The amendment to the law will enter into force on June 19, 2026.
Which legislative act was amended by the adoption of the above-mentioned act:
Pursuant to the above-mentioned Decision, the Form of the Registration Application for the Personal Data of Employees, Individuals Receiving Contractual Income, Interns, and Apprentices Undergoing Vocational Training has been adopted.
What are the changes about:
The amendments concern the improvement of the form and completion procedure of the Registration Application for the Personal Data of Employees, Individuals Receiving Contractual Income, Interns, and Apprentices Undergoing Vocational Training. The draft clarifies the scope of information to be submitted to the tax authority, the requirements for completing such information, as well as the procedure for submitting information relating to employment relationships, civil-law contracts, vocational training, and social payments. The purpose of the amendments is to ensure a more efficient and uniform implementation of the personal data registration process, to clarify the content and format of the information submitted by employers, and to contribute to the creation of accurate and comprehensive data within the tax and social registration systems.
PART II: PUBLIC SECTOR
(This section of legal updates includes legal news related to the public sector for June 2026)
1. Decision of the Government of the Republic of Armenia No. 845-N of 18 June 2026 On Making Amendments to Decision No. 1317-N of the Government of the Republic of Armenia of 5 October 2017
Name of the legislative act
Decision of the Government of the Republic of Armenia No. 845-N of 18 June 2026 On Making Amendments to Decision No. 1317-N of the Government of the Republic of Armenia of 5 October 2017
https://www.arlis.am/hy/acts/226673
Change status:
This Decision entered into force on June 19, 2026.
Which legislative act was amended by the adoption of the above-mentioned act:
Decision No. 1317-N of the Government of the Republic of Armenia of 5 October 2017.
What the amendments concern:
The amendments concern the revision of the conditions for the application of the value-added tax (VAT) exemption with respect to children's, school, and educational publications. The amendments repeal the provisions under which the supply of such publications was exempt from VAT only if they had been officially approved or recommended by the Ministry of Education and Science of the Republic of Armenia. The purpose of the amendments is to eliminate the requirement for official approval or recommendation by the Ministry as a prerequisite for the application of the VAT exemption, simplify the conditions governing the application of the tax exemption, and align the existing regulatory framework by removing restrictions that are no longer considered necessary.
GOVERNMENT OF THE REPUBLIC OF ARMENIA
DECISION No.
845-N of 18 June 2026
On Making Amendments to Decision No. 1317-N of the Government of the Republic of Armenia of 5 October 2017
Pursuant to Articles 33 and 34 of the Law of the Republic of Armenia On Normative Legal Acts, the Government of the Republic of Armenia hereby resolves:
1. In Appendix No. 1 approved by Clause 1 of Decision No. 1317-N of the Government of the Republic of Armenia of 5 October 2017 On Defining the Scope of Application of Value Added Tax Exemptions, the final sentences of Clauses 3, 4, and 5 shall be repealed.
Accordingly:
The following sentence of Clause 3 is repealed:
"The supply of children's literature by the publisher or supplier shall be exempt from value added tax, provided that such literature has been officially approved or recommended as children's literature by the Ministry of Education and Science of the Republic of Armenia."
The following sentence of Clause 4 is repealed:
"The supply of school publications shall be exempt from value added tax, provided that such publications have been officially approved or recommended by the Ministry of Education and Science of the Republic of Armenia as school publications."
The following sentence of Clause 5 is repealed:
"The supply of educational publications shall be exempt from value added tax, provided that such publications have been officially approved or recommended by the Ministry of Education and Science of the Republic of Armenia.".
PART III: CORPORATE SECTOR
(This section of legal news includes legal news related to the corporate sector for the month of June 2026)
1. On Amendments and Supplements to the Law on Joint Stock Companies
Name of the legislative act:
Law of the Republic of Armenia No. HO-192-N of 11.05.2026 on Amendments and Supplements to the Law "On Joint Stock Companies"
Change status :
This law entered into force on June 15, 2026.
Which legislative act was amended by the adoption of the above-mentioned act:
As a result of the adoption of this Law, a change was made to the Law "On Joint Stock Companies".
What the amendments concern:
The amendments relate to the expansion of mechanisms for protecting the rights of minority (non-controlling) shareholders in joint-stock companies, clarification of the grounds for mandatory share buyback, definition of the concept of a controlling shareholder, and regulation of the share valuation process. The draft significantly expands the cases when a shareholder may demand that the company repurchase its shares, in particular, if the decisions, actions, or inaction of the company or the controlling shareholder have obvious adverse consequences for the non- controlling shareholder, if annual general meetings have not been convened for a long time, annual reports have not been approved, dividends have not been distributed or paid, as well as in other cases when the court may record an abuse of rights.
At the same time, the concept of "controlling shareholder" is defined as a shareholder who alone owns at least 50 percent of the company's voting shares and the votes granted by them or can otherwise predetermine the company's decisions. The same status can also be attributed to two or more shareholders who act in concert and control the company's decision-making to the detriment of the interests of minority shareholders. In addition, it is stipulated that in cases provided for by law, the market value of shares or other securities may be assessed only by appraisers who meet the criteria to be established by the Government. At the same time, it is stipulated that the new regulations are also applicable to companies established before the law enters into force and their controlling shareholders, and the Government is obliged to adopt a decision within the specified period defining the criteria to be presented to securities appraisers.
Article 57 of the Law HO-232 of September 25, 2001 "On Joint Stock Companies" (hereinafter referred to as the Law) Rewrite Part 1 as follows:
Article 57. Repurchase of the Company's shares at the request of shareholders:
Old version.
1. Owners of voting shares have the right to demand from the Company the determination of the share repurchase price and the repurchase of their shares or a part thereof, if: a) a decision has been made to reorganize the Company, suspend the preemptive right or conclude a major transaction in accordance with paragraph 1 of Article 61 of this Law, and the specified shareholders have voted against the reorganization of the Company, suspension of the preemptive right or conclusion of the specified major transaction, or have not participated in the voting on these issues; b) amendments or additions have been made to the charter, or the charter has been approved in a new edition, as a result of which the rights of the mentioned shareholders have been limited, and they voted against or did not participate in the vote.
New version.
1. Owners of voting shares have the right to demand from the Company the determination of the share repurchase price and the repurchase of the shares owned by them or a part thereof, if:
1) a decision has been made to reorganize the Company, suspend the preemptive right or conclude a major transaction in accordance with Part 1 of Article 61 of this Law, and the specified shareholders have voted against the reorganization of the Company, suspend the preemptive right or conclude the specified major transaction or have not participated in the voting on these issues;
2) amendments or additions have been made to the charter, or the charter has been approved in a new edition, as a result of which the rights of the mentioned shareholders have been limited, and they voted against or did not participate in the vote;
3) The decision, action or inaction of the Company or a controlling shareholder causes obvious adverse consequences for a non-controlling shareholder of the Company, including when a clearly disproportionate advantage is granted to the controlling shareholder of the Company to the detriment of non-controlling shareholders of the Company; 4) The Company has not convened an annual general meeting of shareholders for at least three years in the last five years of its operation or has not approved the Company's annual reports, balance sheets, profit and loss account, distribution of profits and losses, adopted a decision on the payment of annual dividends and approved the amount of annual dividends. Moreover, failure to notify a shareholder of the annual general meeting of shareholders is a basis for a shareholder not considered to be a controlling shareholder to exercise the right to repurchase a share owned by him by the Company, as defined in this paragraph.
5) The Company has not distributed or paid dividends to the non-controlling shareholder of the Company for at least five years out of the last 10 years of its operation, or the dividends distributed and paid are insignificant compared to the average annual return on the market value of the shares owned by the non-controlling shareholder, determined solely on the basis of the value of the Company's net assets, calculated according to the bank interest rate set by the Central Bank, unless otherwise provided for in the shareholders' agreement signed between the shareholders of the Company; 6) there are other grounds that may be considered by the court to be an abuse of rights by the Company or the controlling shareholder.
Fill in part 1.1 with the following content:
1.1. For the purposes of this Article, a shareholder shall be considered a controlling shareholder if he directly and solely owns 50 percent or more of the Company's voting shares and simultaneously the votes granted by them or has the ability to predetermine the Company's decisions in any manner not prohibited by law. Two or more shareholders of the Company, who together own 50 percent or more of the Company's voting shares and simultaneously the votes granted by them and act in concert against the interests of shareholders who are not considered controlling shareholders, shall also be considered a controlling shareholder for the purposes of this Article.
To supplement Part 5 of Article 59 of the Law with a new paragraph with the following content:
Article 59. Procedure for determining the market value of the company's property
5. If the need or possibility of assessing the market value of shares or other securities is provided for by law, only a person meeting the criteria established by the Government may carry out the assessment of shares or other securities.
Article 4. Final part and transitional provisions
1. This law shall enter into force one month after the date of its official publication, with the exception of Article 3 of this law, which shall enter into force on the day following the official publication of this law.
2. The regulations provided for by this Law shall also apply to companies established before the entry into force of this Law, to controlling shareholders within the meaning of Part 1.1 of Article 57 of the Law, as supplemented by Point 2 of Article 1 of this Law, and to the activities of such companies and shareholders.
3. The Government decision establishing the criteria to be presented to persons carrying out valuation of shares or other securities, as defined in Article 3 of this Law, shall be adopted within one month after Article 3 of this Law enters into force.
PART IV. INSOLVENCY SECTOR
(This section of legal updates includes legal news related to the insolvency sector for June 2026)
1. Adoption of the Insolvency Code
Name of the legislative act:
Adoption of the Insolvency Code on 18 June 2026 Source: http://www.parliament.am/draftreading_docs8/K-1201_DR2.pdf
Change status :
This Code shall enter into force one year after its official publication. Upon the entry into force of the Insolvency Code, the currently effective Law of the Republic of Armenia “On Bankruptcy” (HO-51-N) shall be repealed.
Which legislative act was amended by the adoption of the above-mentioned act:
The adoption of the above-mentioned act will result in the repeal of the Law of the Republic of Armenia “On Bankruptcy” (HO-51-N)..
What the amendments concern:
The primary objective of adopting this Code is to systematize and improve the legal framework governing insolvency proceedings by establishing clearer, more efficient, and more predictable legal grounds for the conduct of insolvency procedures. The Code aims to clarify the grounds, conditions, and criteria for declaring a debtor insolvent, regulate insolvency prevention procedures, and revise the relationship between liquidation and rehabilitation proceedings, thereby creating more favorable conditions for restoring the debtor’s solvency. In addition, the Code seeks to improve the regulations governing the legal status, rights, and obligations of insolvency administrators, ensure more effective procedures for the inventory, valuation, and realization of the debtor’s assets, clarify the powers of the court and other participants in insolvency proceedings, and regulate special insolvency procedures as well as proceedings involving foreign elements. These changes are intended to enhance legal certainty, ensure uniformity in legal practice, and increase the overall effectiveness of insolvency proceedings.
Key Provisions of the Insolvency Code
PREVENTIVE RESTRUCTURING PROCEEDINGS
Article 116. Grounds for Initiating Preventive Restructuring Proceedings
1. An application for the commencement of preventive restructuring proceedings may be filed in the event of a risk of insolvency.
Article 117. Submission of an Application for Preventive Restructuring Proceedings
1. An application for the commencement of preventive restructuring proceedings may be submitted by the debtor or by creditors with the debtor's consent.
Article 124. Effect of the Restructuring Plan
1. A restructuring plan approved by the court shall be binding upon all creditors included in the plan.
Insolvency Criteria and Grounds for Bankruptcy
Article 3. Characteristics of Insolvency of a Legal Entity Debtor and Grounds for Declaring Bankruptcy
1. A legal entity debtor shall be deemed insolvent:
1. if it has allowed an overdue period of one month or more in respect of undisputed payment obligations exceeding five thousand times the minimum wage established by law (actual insolvency); or
2. if, based on an assessment conducted in accordance with accounting rules, the debtor's liabilities exceed the value of the debtor's assets (balance-sheet insolvency).
2. An insolvent legal entity debtor may be declared bankrupt by a judgment of the Bankruptcy Court:
1. on the ground provided for in point 1 of part 1 of this Article, based on a compulsory bankruptcy petition, provided that at the time of the judgment the debtor's default, caused by the debtor's actual inability to make payment, continues to exist;
2. on the ground provided for in point 2 of part 1 of this Article, based on a voluntary bankruptcy petition.
3. In the case of a compulsory bankruptcy petition, it shall be presumed that the legal entity debtor's default is caused by its actual inability to make payment unless proven otherwise. If the debtor submits evidence demonstrating its actual ability to make payment, the Bankruptcy Court shall have the right to adjourn the proceedings, granting a period of up to six months for the fulfilment of the debtor's obligation or for reaching an amicable settlement between the parties. Upon resumption of the proceedings, if the overdue obligation has not been fulfilled or no settlement has been reached between the parties, the court shall deem it established that the default was caused by the debtor's actual inability to make payment.
4. An application for voluntary bankruptcy on the basis of balance-sheet insolvency may be submitted by a joint-stock company or a limited liability company where the company's net assets have become negative, provided that the procedures prescribed respectively by the Law on Joint-Stock Companies or the Law on Limited Liability Companies have been complied with.
Article 4. Characteristics of Insolvency of a Natural Person Debtor and Grounds for Declaring Bankruptcy
1. A natural person debtor shall be deemed insolvent if he or she has allowed an overdue period of one month or more in respect of undisputed payment obligations exceeding five thousand times the minimum wage established by law (actual insolvency).
2. An insolvent natural person debtor may be declared bankrupt by a judgment of the Bankruptcy Court if, at the time of the judgment, the debtor's default caused by the debtor's actual inability to make payment continues to exist, either on the basis of a compulsory bankruptcy petition or a voluntary bankruptcy petition.
3. In the case of a compulsory bankruptcy petition, it shall be presumed that the natural person debtor's default is caused by his or her actual inability to make payment unless proven otherwise. If the debtor submits evidence demonstrating actual ability to make payment, the Bankruptcy Court shall have the right to adjourn the proceedings in order to allow time for an amicable settlement between the parties. Upon resumption of the proceedings, if the overdue obligation has not been fulfilled or no settlement has been reached between the parties, the court shall deem it established that the default was caused by the debtor's actual inability to make payment.
4. In the case of a voluntary bankruptcy petition, the natural person debtor must prove that the default was caused by his or her actual inability to make payment.
5. The Bankruptcy Court may reject a voluntary bankruptcy petition filed by a natural person debtor if, as a result of the examination of the petition, it is established that the debtor contributed through his or her actions to the occurrence of his or her own insolvency.
6. The Bankruptcy Court may render the decision provided for in part 5 of this Article if it is evident from the documents referred to in Article 262 of this Code that the insolvency of the natural person resulted from suspicious transactions provided for in Article 193 of this Code.
Article 141. Grounds and Procedure for Declaring a Legal Entity Debtor Bankrupt
1. An insolvent legal entity debtor may be declared bankrupt by a court judgment:
1. on the basis of a voluntary bankruptcy petition; or
2. at the request of a creditor, on the basis of a compulsory bankruptcy petition.
2. A bankruptcy petition may be based on aggregated claims arising from different obligations.
3. One or more creditors may jointly file a compulsory bankruptcy petition.
4. Where bankruptcy proceedings have already been initiated, any new bankruptcy petition submitted before the issue of declaring the debtor bankrupt has been resolved shall be submitted to and examined by the judge handling the bankruptcy case within the framework of the same bankruptcy proceedings. No state duty shall be payable for such new bankruptcy petition pursuant to the Law on State Duty.
Procedure for Reviewing Bankruptcy Petitions and Grounds for Termination of Proceedings
Article 153. Consequences of Accepting a Bankruptcy Petition for Proceedings
2. By the decision accepting the bankruptcy petition for proceedings, the Bankruptcy Court shall, upon the motion of a party, impose an attachment on the debtor's property in the amount of the obligation underlying the petition and the costs of the bankruptcy proceedings. By the same decision, the Bankruptcy Court may, upon the motion of a party, prohibit or restrict the registration of changes relating to the debtor legal entity.
Article 158. Withdrawal of the Claim
1. The applicant shall have the right to withdraw the bankruptcy claim within one week from the date of receipt of the decision accepting the bankruptcy petition for proceedings.
2. Prior to terminating the proceedings on the basis of the withdrawal of the claim, the Bankruptcy Court shall convene a court hearing and explain to the applicant the procedural consequences of withdrawing the claim, except where the motion for withdrawal is submitted by a legal entity, a state or local self-government body, or a natural person represented by an attorney.
3. A withdrawal of the claim made in violation of the requirements of Part 1 of this Article shall not be subject to consideration by the court.
Article 159. Settlement Agreement
1. From the date of receipt of the decision accepting the bankruptcy petition for proceedings, the creditor and the debtor may conclude a settlement agreement. The agreement shall be made in writing, signed by the parties, and submitted to the court for approval.
2. The Bankruptcy Court shall consider the settlement agreement at a court hearing with the participation of the parties, except where a party signing the settlement agreement is a legal entity, a state or local self-government body, or a natural person represented by an attorney, or where the parties to the settlement agreement have requested that it be considered in their absence.
3. When considering the settlement agreement at the court hearing, the Bankruptcy Court shall explain to the persons present at the hearing the procedural consequences of its approval.
4. The Bankruptcy Court shall not approve the settlement agreement if:
1. it contradicts the law or other legal acts;
2. it violates the rights or legitimate interests of another person;
3. it contains terms that do not allow the amount of money to be paid, the property to be transferred, or the actions to be performed by a party to be determined with certainty;
4. it contains obligations whose performance is conditional upon the performance of obligations by the other party.
5. If the settlement agreement is not approved by the court, the examination of the bankruptcy petition shall continue. In such case, the court shall issue a procedural ruling refusing approval of the settlement agreement. A settlement agreement that has not been approved by the Bankruptcy Court shall not give rise to any substantive legal or procedural consequences.
Article 160. Termination of Proceedings Without Deciding the Bankruptcy Matter on the Merits
1. The Bankruptcy Court shall leave the bankruptcy petition without consideration if:
1. the petition has been submitted by a person lacking procedural legal capacity, except where the legal representative of such person insists on the petition;
2. the petition has been signed by a person who is not authorized to sign it, except where a person duly authorized to sign the petition insists on the petition;
3. the duly notified applicant or his/her representative fails to appear at two consecutive court hearings and has not submitted a motion to adjourn the proceedings or to have the case examined in his/her absence, and the debtor has not requested the continuation of the proceedings.
2. The Bankruptcy Court shall terminate the bankruptcy proceedings during the examination of the bankruptcy petition if:
1. there is a final and binding judgment declaring the debtor bankrupt;
2. following the creditor’s death, the undisputed obligation underlying the bankruptcy petition does not permit legal succession;
3. the petition has been filed against a dissolved legal entity;
4. the applicant has withdrawn the claim;
5. after the bankruptcy petition was accepted for proceedings, the characteristics of insolvency have ceased to exist;
6. the court has approved a settlement agreement, including a settlement agreement concluded as a result of mediation.
3. When leaving the petition without consideration or terminating the proceedings, the court shall issue a ruling that also resolves matters relating to the reimbursement and allocation of court costs and the lifting of interim measures securing the claim.
Article 161. Determination of the Bankruptcy Matter on the Merits
1. The court shall examine the issue of bankruptcy within the scope of the grounds and substantiation set out in the petition.
2. Where several bankruptcy petitions have been filed against the debtor within the same bankruptcy proceedings, the court shall determine the issue of the debtor’s bankruptcy in relation to each petition.
3. Following examination of the bankruptcy matter on the merits, the court shall render a judgment:
1. declaring the debtor bankrupt; or
2. rejecting the bankruptcy petition.
4. In the judgment rendered upon examination of the bankruptcy matter on the merits, the court shall also decide:
1. any issue concerning the validity of the transaction underlying the bankruptcy petition where such validity has been challenged by the debtor;
2. matters relating to the reimbursement and allocation of court costs.
Article 223. Liquidation Proceedings of a Legal Entity Debtor
1. If a financial rehabilitation plan is not submitted within the period prescribed by this Code, if approval of the submitted plan is denied, if the financial rehabilitation plan is terminated prematurely, or if approval of the administrator’s report on the implementation of the financial rehabilitation plan is denied, the Bankruptcy Court shall, within three days of becoming aware of the relevant circumstance, issue a ruling commencing liquidation proceedings of the legal entity debtor (hereinafter referred to as the “liquidation of the debtor”).
2. Within five days of the issuance of the ruling on the debtor’s liquidation, the administrator shall publish it on the official public notices website of the Republic of Armenia. The Bankruptcy Court shall send a copy of the liquidation ruling to the authority responsible for the state registration of legal entities for the purpose of making the relevant entry.
3. Following publication of the ruling on the debtor’s liquidation, the administrator shall proceed with the sale of the debtor’s assets in accordance with the procedure established by this Code.
Article 225. Suspension of the Debtor’s Activities
1. If the Bankruptcy Court has issued a ruling on the liquidation of the debtor, all powers of the debtor’s director, other governing bodies, and founders, as well as all rights of the debtor to manage or dispose of its property, shall be suspended by court order, except for the authority to make decisions regarding the conclusion of agreements under which third parties provide funds for the fulfilment of the debtor’s obligations.
2. By a ruling of the Bankruptcy Court, the debtor’s rights to manage or dispose of its property may also be suspended prior to liquidation if the debtor’s activities are clearly unprofitable, may result in a decrease in the value of the debtor’s assets, or if it is evident that the debtor is unable to present a financial rehabilitation plan acceptable to creditors.
Article 231. Implementation of Proceedings for the Establishment of a New Legal Entity
1. Proceedings for the establishment of a new legal entity shall be carried out through the reorganization of the debtor by way of spin-off, in accordance with the specific rules set out in this Article, and by transferring ownership of the shares in the legal entity established (newly created) as a result of such reorganization to the creditors in the manner prescribed by this Code.
Article 240. Property Remaining Unsold in Liquidation Proceedings or Remaining After Settlements with Creditors
1. The founder (participant, shareholder, or member) of a debtor declared bankrupt shall, in accordance with the procedure prescribed by this Code, be entitled to receive the debtor's property in the following cases:
1. where creditors have refused to accept the debtor's property remaining unsold during the liquidation proceedings for the purpose of satisfying their claims;
2. where the debtor's property remains after settlements with creditors have been completed.
Article 241. Transition to Financial Rehabilitation
1. If financial rehabilitation has not been carried out during the debtor's bankruptcy proceedings, and during the liquidation proceedings the administrator has sufficient grounds, including grounds confirmed by financial analysis data, to assume that the debtor's solvency may be restored, the administrator shall be required, within one month, to convene a creditors' meeting to consider applying to the Bankruptcy Court for the termination of the liquidation proceedings and the commencement of financial rehabilitation.
2. If the Bankruptcy Court issues a ruling terminating the liquidation proceedings and commencing financial rehabilitation, then:
1. the restrictions on the activities of the debtor's governing bodies provided for by this Chapter shall cease to apply;
2. claims satisfied during the liquidation proceedings shall be deemed discharged and shall not be subject to reinstatement.
Article 242. Motion for Closing the Bankruptcy Case
1. A motion for closing the bankruptcy case may be submitted to the Bankruptcy Court by the debtor and the bankruptcy administrator, unless otherwise provided by this Article. Such motion may be filed if at least one of the following circumstances exists:
1. no claims have been filed against the debtor;
2. the debtor has no property that may be included in the bankruptcy estate, or the debtor's property cannot be located, or the debtor's property is of such insignificant value that continuation of the bankruptcy procedures would not be reasonable, or the costs of locating the debtor's property or collecting assets are not economically justified, rendering further bankruptcy procedures ineffective;
3. all admitted claims have been fully satisfied as a result of the measures provided for by this Code for the discharge of obligations;
4. after all possible measures provided for by this Code for the discharge of obligations have been fully implemented, the admitted claims have not been fully satisfied, and at least one of the circumstances referred to in point 2 of this part exists;
5. creditors have waived their claims or extended the deadlines for their performance, as a result of which the amount of obligations has become less than five thousand times the statutory minimum wage and there is no default exceeding three months with respect to any obligation.
Specific Features of Illicit Asset Forfeiture Proceedings in Bankruptcy Proceedings
Article 299. Status of the Competent Authority for Confiscation of Property of Illegal Origin During Bankruptcy Proceedings
1. Within 15 days after receiving the notification provided for in point 11 of part 1 of Article 162 of this Code, the competent authority designated under the Law on Confiscation of Property of Illegal Origin (hereinafter in this Chapter referred to as the “Competent Authority”) shall provide the court conducting the bankruptcy proceedings with information concerning the debtor's property, including court decisions on the merits that have entered into force as of the date of receipt of the notification, pending civil cases, enforcement proceedings, and interim measures applied. If such circumstances have not yet arisen within the period specified in this part, the Competent Authority shall submit information regarding court decisions on the merits that entered into force after receipt of the notification, pending civil cases, enforcement proceedings, and interim measures within 15 days after the relevant circumstances become known.
2. Within the time limits prescribed by part 1 of this Article, the Competent Authority shall also submit information to the court regarding creditors' claims that are being challenged by the Competent Authority.
3. After the judgment approving the preventive restructuring proceedings and the financial rehabilitation plan, or the judgment declaring the debtor bankrupt, enters into legal force, the Competent Authority may review the materials of the bankruptcy proceedings within the framework of confiscation proceedings concerning property of illegal origin.
4. If the conduct of the bankruptcy proceedings may affect the confiscation process concerning property of illegal origin, the Competent Authority may, on its own initiative and after receiving the notification provided for in point 11 of part 1 of Article 162 of this Code, apply to the court requesting recognition as an interested party.
If the court grants the motion, the Competent Authority shall acquire, with respect to matters governed by Chapters 26 and 28 of this Code, the rights arising from creditor status, including the right to: receive copies of applications, amendments to claims, distribution plans, and court decisions; challenge submitted applications within the time limits established by this Code; submit objections and positions; be notified of the time and place of court hearings; and participate in court hearings.
If the court rejects the motion referred to in this part, the Competent Authority may appeal the relevant judicial act before the Court of Appeal.
Article 300. Peculiarities of Proceedings for the Confiscation of Property of Illegal Origin in Relation to the Verification of Claims, Disposal of Property, and Distribution of Funds in Bankruptcy Proceedings
1. The Competent Authority may submit to the court monetary claims confirmed by a final judicial act of the Anti-Corruption Court that has entered into legal force. Such claims shall be included in the priority ranking provided for in point 8 of part 1 of Article 181 of this Code as subordinated unsecured claims. The Competent Authority shall submit such claims to the Court within the time limits prescribed by this Code.
2. If the final judicial act referred to in part 1 of this Article enters into legal force after the expiry of the time limit established by this Code, and the bankruptcy proceedings have not yet been completed on any of the grounds provided for by this Code, the Competent Authority shall submit the relevant monetary claim for the Court’s approval no later than one month after the respective judicial act of the Anti-Corruption Court enters into legal force.
3. Attachments or restrictions imposed within proceedings for the confiscation of property of illegal origin initiated pursuant to the Law on Confiscation of Property of Illegal Origin (hereinafter in this Chapter referred to as the “Proceedings”) shall apply, in bankruptcy proceedings, to the debtor’s property (excluding assets subject to secured rights) only with respect to the property, portion of property, or share which, within the framework of the Proceedings, the Competent Authority considers to be of illegal origin until the relevant final judicial act enters into legal force, and thereafter in the amount established by the relevant final judicial act of the Anti-Corruption Court.
4. Within bankruptcy proceedings, attached property of the debtor, or a portion or share thereof (excluding assets subject to secured rights), may be managed, including alienated, possessed, or used in accordance with the procedure established by this Code, while the proceeds generated shall be distributed or transferred to the Proceedings in accordance with the procedure set out in this Article.
5. Attachments or restrictions imposed within the Proceedings shall not apply to assets subject to secured rights owned by the debtor, except where the proceeds generated from the realization of such assets in bankruptcy proceedings exceed the secured creditor’s claim. After satisfaction of the secured creditor’s claim and distribution of funds in accordance with the prescribed procedure, any surplus funds shall, to the extent that they may satisfy the Competent Authority’s anticipated monetary claim after satisfaction of claims of higher-ranking creditors, be transferred to the Enforcement Service conducting compulsory enforcement within the framework of the Proceedings for the satisfaction of the relevant claims.
6. Attachments or restrictions imposed within the Proceedings shall not apply to assets subject to secured rights owned by third parties, except where the proceeds generated from the realization of such assets in bankruptcy proceedings exceed the secured creditor’s claim. After satisfaction of the secured creditor’s claim and distribution of funds in accordance with the prescribed procedure, any surplus funds shall be transferred to the Enforcement Service conducting compulsory enforcement within the framework of the Proceedings for the satisfaction of the relevant claims.
7. Property of the debtor that is subject to confiscation within the Proceedings and is alleged to be of illegal origin shall be managed within the bankruptcy proceedings, including through alienation, possession, or use, in accordance with the procedure established by this Code. The proceeds generated from such disposition shall be transferred to the Enforcement Service conducting compulsory enforcement within the framework of the Proceedings, in accordance with the percentage or other measure of illegality recorded in the Proceedings with respect to the relevant property, or in the amount established by the relevant final judicial act of the Anti- Corruption Court that has entered into legal force.
8. The powers to carry out the actions provided for in parts 3–7 of this Article, as well as the powers to manage, possess, and use the debtor’s property, shall belong to the bankruptcy administrator.
A Separate Chapter Has Been Added Concerning the Insolvency of Organizations of Special Importance
Article 288. Specific Features of Insolvency Proceedings for Organizations of Special Importance
1. The provisions of this Code shall apply to relations arising in connection with the insolvency of organizations of special importance, unless otherwise provided by this Chapter.
2. A compulsory bankruptcy petition against an organization of special importance may be filed jointly by more than one creditor in accordance with the procedure established by this Code. A compulsory bankruptcy petition may be filed by a single creditor only where the debtor has undisputed payment obligations as provided for in point 1 of part 1 of Article 5 of this Code.
3. For the purposes of this Code, an organization of special importance shall mean:
1. a legal entity whose number of employees constitutes at least 25 percent of the employed population of the relevant community (municipality);
2. a legal entity employing more than 2,000 persons; or
3. persons carrying out regulated activities in the energy sector (electricity, heat supply, and gas supply), water sector, and telecommunications (electronic communications) sector.
4. The competent state authorities or local self-government bodies may also be involved in the examination of insolvency proceedings concerning an organization of special importance.
Article 289. Specific Features of Financial Rehabilitation of Organizations of Special Importance
1. Where the creditors' meeting fails to approve a financial rehabilitation plan for an organization of special importance, the Bankruptcy Court may nevertheless approve the submitted financial rehabilitation plan: in the case provided for in point 3 of part 3 of Article 288 of this Code, upon the motion of the competent state authority; and in the cases provided for in points 1 and 2 of part 3 of Article 288 of this Code, upon the motion of the competent local self-government body, provided that the relevant competent authority furnishes a guarantee for the performance of the debtor's obligations.
2. The amount of the guarantee referred to in part 1 of this Article may not be less than the amount of the debtor's liabilities reflected in the balance sheet as of the latest reporting date preceding the first creditors' meeting.
3. When issuing a decision approving a financial rehabilitation plan under part 1 of this Article, the Bankruptcy Court shall also approve a debt repayment schedule, which must provide for:
1. the commencement of repayment of creditors' claims no later than one month after the court's decision approving the financial rehabilitation plan; and
2. repayment of creditors' claims through equal monthly instalments over a period of one year, commencing from the start date of repayment of creditors' claims.
Article 290. Extension of Financial Rehabilitation of Organizations of Special Importance
1. The Bankruptcy Court may extend the financial rehabilitation period of an organization of special importance for an additional period of one year upon the motion of the competent state authority or local self-government body, provided that a guarantee for the performance of the debtor's obligations has been submitted.
Article 291. Guarantee for the Performance of the Debtor's Obligations
1. A guarantee may be provided by the competent state authority.
2. The guarantee for the debtor's obligations shall be submitted to the Bankruptcy Court in writing and shall specify the amount of the debtor's obligations and the payment schedule.
3. The debtor and the guarantor shall be obligated to commence settlements with creditors in accordance with the payment schedule established by the guarantee.
4. If creditors' claims are not satisfied in the prescribed manner and within the prescribed time limits, creditors shall be entitled to present claims for the unpaid amounts directly against the guarantor.
5. A breach by the guarantor of obligations owed to a creditor holding claims amounting to at least one-third of all creditors' claims may serve as grounds for the early termination of the financial rehabilitation proceedings and the commencement of liquidation proceedings.
Article 292. Satisfaction of Creditors' Claims During the Financial Rehabilitation of Organizations of Special Importance
1. The competent state authority or local self-government body may, at any time before the completion of the financial rehabilitation of an organization of special importance, satisfy all creditors' claims.
2. Settlements with creditors and satisfaction of creditors' claims shall be carried out in accordance with the priority ranking established by this Code.
3. Upon full satisfaction of creditors' claims, the bankruptcy proceedings shall be terminated.
Article 293. Sale of the Enterprise of an Organization of Special Importance
1. During financial rehabilitation proceedings, the enterprise of an organization of special importance may be sold.
2. Upon the motion of the competent state authority or local self-government body, the preservation of employment for at least fifty percent of the workforce existing at the time of the sale of the enterprise may be designated as an essential term of the sale and purchase agreement for a specified period, not exceeding three years from the effective date of the agreement, provided that the best protection of creditors' interests is ensured.
3. If the purchaser fails to comply with the conditions specified in part 2 of this Article, the Bankruptcy Court may terminate the agreement upon the motion of the competent state authority or local self-government body. In the event of termination of the agreement, the purchaser shall be compensated from the relevant state or municipal budget for the purchase price of the enterprise and for investments made during the term of the agreement, and the enterprise shall be transferred into the ownership of the competent state authority or local self- government body.
4. If the motion referred to in part 2 of this Article is not submitted, or if it is submitted but the enterprise is not sold under the conditions specified therein, the enterprise shall be sold in accordance with the general rules governing the sale of enterprises as set out in Articles 251 and 252 of this Code.
Article 294. Sale of Property of Organizations of Special Importance in Liquidation Proceedings
1. Where the sale of property is initiated in the liquidation proceedings of an organization of special importance, the administrator shall first offer for sale the debtor's enterprise under the conditions provided for in Articles 246 and 247 of this Code.
2. If the debtor's enterprise is not sold in accordance with the procedure prescribed by part 1 of this Article, the sale of the debtor's assets shall then be carried out.
PART V. COMPETITIVE SECTOR
(This section of legal updates includes legal news related to the highly competitive sector as of April 2026)
1. Law of the Republic of Armenia, Adopted on 16 April 2026, on Making Amendments and Additions to the Law of the Republic of Armenia "On Advertising"
Name of the legislative act:
Law of the Republic of Armenia, Adopted on 16 April 2026, on Making Amendments and Additions to the Law of the Republic of Armenia "On Advertising" https://arlis.am/hy/acts/224782
Change status:
This law entered into force on July 1, 2026..
What the amendments concern:
As a result of these legislative amendments, it is planned to make a number of systemic and substantive changes to the RA Law "On Advertising", which are aimed at more clear and effective regulation of advertising relations, as well as strengthening the protection of consumers and competition.
In particular, Article 2 of the law is being revised, which specifies and clarifies the main concepts used in the field of advertising. These amendments provide a more complete definition of the concept of “advertising”, emphasize the purpose of its dissemination - the formation or maintenance of interest among an indefinite number of people. At the same time, various types of advertising are defined, including unscrupulous, deliberately false and misleading advertisements, the content of each of which is disclosed in more detail, paying particular attention to situations where information may be distorted or unreliable.
The law also clarifies the subjects of advertising relations: the concepts of advertiser, advertising producer, advertiser and advertising consumer, which allows for a clearer separation of the role and scope of responsibility of each. In addition, new institutions are introduced, such as "umbrella" advertising, social advertising and lottery advertising, through which separate specific sectors and targeted information flows are regulated.
The legislative amendments also revise Article 21, defining the criteria for assessing misleading advertising. In this context, it is clarified that when assessing the misleading nature of advertising, both the characteristics of the product or service, as well as the conditions for pricing and the information provided about the advertiser should be taken into account. An important innovation is the provision according to which the burden of proving the accuracy of the data provided during advertising activities is placed on the advertiser itself, which significantly strengthens the legal protection of consumers.
At the same time, the legislation is supplemented with a new Article 21.1, which defines the conditions for the admissibility of advertising containing comparisons. According to these regulations, such advertising is permissible only if it is not considered misleading, is carried out on the basis of an objective comparison, refers to goods or services serving the same purpose, and does not contain discrediting or unfair use of competitors' trademarks or activities. In addition, it is prohibited to cause confusion between economic entities operating in the market or to use the reputation of a competitor in an unfair manner.
Overall, these changes aim to ensure more transparent and fair regulation of the advertising field, reduce the spread of misleading information, increase consumer confidence, and ensure a healthy competitive environment in the economy.
Article 2 of Law HO-55 of April 30, 1996 "On Advertising" (hereinafter referred to as the Law) shall be amended as follows:
"Article 2. Basic concepts used in the law"
1. The following basic concepts are used in this law:
1) advertising - the dissemination of information about legal or natural persons, goods, ideas or initiatives among an indefinite number of persons, using various types of information media, which is designed to form or maintain interest in the given natural or legal person, goods or initiatives;
2) Unfair advertising - advertising, the prohibitions and restrictions established by the current legislation have been circumvented during the ordering, production and distribution of which.
3) Deliberately false advertising: a form of dishonest advertising through which the advertiser, advertising producer or advertising carrier deliberately misleads advertising consumers.
4) misleading advertising - dishonest advertising that contains any unreliable, distorted information, or the information is presented in a way that, although it is factually correct, in any way, including the manner of presentation, may create a false impression about the economic entity, its activities or the product (work, service) offered, the measures contributing to its advertising, distribution or sale, the geographical origin or production or sale process of the product (work, service), its suitability for a particular purpose, its shelf life, quality, quantity or other characteristics, the conditions of offer or delivery or the price or the method of its calculation or the rights of the consumer, misleads or may mislead consumers as defined by this Law and, due to its misleading nature, may affect the economic behavior of these persons or may harm competing economic entities.
5) advertising containing comparisons - advertising that directly or indirectly mentions a competing economic entity or the goods or services offered by the latter;
6) Counter-advertising - a type of advertising that is given with the aim of eliminating misconceptions that have arisen among consumers as a result of dishonest advertising, by refuting the dishonest advertising and restoring the real facts.
7) Advertiser - a legal or natural person who submits advertising information for the purpose of production, placement and dissemination of advertising.
8) advertising producer - a legal or natural person who directly provides services in the field of advertising production;
9) advertiser - a legal or natural person who, by providing appropriate funds, places and disseminates advertising;
10) Advertising consumer: a legal or natural person to whom the advertisement is delivered and who bears the corresponding impact of the advertisement.
11) " Umbrella " advertising is advertising in which the trademark or trade name used for the advertised goods and services is identical or confusingly similar to the trademark of the goods and services or the trade name of the legal entities producing or offering them, the advertising of which is subject to restrictions under this Law.
12) social advertising is non-commercial (non-profit) information disseminated for the purpose of informing the public about human rights and obligations, the protection of the health of the population, as well as healthy lifestyles and social protection, volunteering, nature conservation, educational programs, patriotic education, the preservation, dissemination and development of culture, disaster resistance, the protection of national interests and other areas, which has been recognized as social advertising in accordance with the procedure specified in Article 13, paragraph 1.2 of this Law.
13) Lottery advertising: advertising of lottery organizers or their sponsors or lotteries or lottery names or lottery brand names (logos).
Article 21 of the Law The second paragraph of Part 2 should be amended as follows:
Article 21. General provisions on unfair advertising
When determining whether an advertisement is misleading, the following characteristics may be taken into account, in particular the information included therein that relates to:
1) the characteristics of the goods or services, such as the availability, nature, structure, form and date of production or supply, suitability for the intended use, methods of use, quantity, technical specifications, country of origin, the results expected from its use or the results of tests and inspections and material characteristics of those goods or services;
2) the price or the method of calculating the price, as well as the conditions for the supply of goods or the provision of services;
3) the advertiser's distinctiveness, characteristics and rights, such as, for example, his identity, assets, qualifications and industrial or intellectual property rights or his awards.
Fill in Part 7 with the following content:
7. During advertising activities, the advertiser bears the responsibility of proving the accuracy of the data presented in the advertisement.
To supplement the law with the following content in Article 21.1:
Article 21.1. Permissible cases of advertising containing comparisons
1. Advertising containing comparisons is permitted in the following cases:
1) it is not misleading within the meaning of Article 2, Part 1, Point 4, Article 21, Part 2, Paragraph 2 of this Law or the Law "On Protection of Consumer Rights";
2) it objectively compares goods or services that meet the same needs or are intended for the same purpose;
3) it objectively compares one or more essential, verifiable features of those goods and services that form a full and complete impression of the product and may include price;
4) it does not damage or discredit the competitor's trademarks, trade names, other distinctive signs, goods, services, activities, or moral and other characteristics;
5) in the case of products with an appellation of origin, it refers to the same appellation;
6) it does not unfairly exploit the reputation of a competitor's trademark, trade name or other distinctive signs or the place of origin of competing goods;
7) it does not present goods or services as replicas or copies of goods or services bearing a registered trademark or trade name;
8) it does not cause confusion among persons engaged in commercial activities between the advertiser and its competing economic entity or between the trademarks, trade names, other distinctive signs, goods or services of the advertiser and its competing economic entity.