ARMENIA Law and Practice Contributed by: Aram Orbelyan, Narine Beglaryan, Artur Hovhannisyan, Lilit Karapetyan, Sarkis Knyazyan and Shushanik Stepanyan, Concern Dialog
that board member or executive body and claim dam - ages. If the damage was caused to the JSC by one of its board members or the executive body, the claim for compensation of damages against that board member or executive body might be brought against the company or its shareholder(s) (jointly) owning 1% or more of the placed common (ordinary) stocks of the company. A breach of fiduciary duty might cause criminal liability for a board member or executive body if their actions or omissions cause essential damages. Shareholders’ Liability Under Armenian law, the separation of liability of a legal entity from its shareholders’ liability is deter - mined. Armenian legislation allows for the “piercing of the corporate veil” in specific cases of activities between parent and daughter or dependent companies (sub - sidiaries). The daughter company must not be liable for the obligations of the parent company, but the par - ent company must bear joint and several liabilities with the daughter company if the parent company (i) has the right to give binding instructions to the daughter company and (ii) transactions are concluded in pursu - ance of that instruction. Other shareholders of a daughter company also have a right to claim from the parent company compensa - tion for any damages caused to the daughter com - pany by the fault of the parent company – ie, when the damage is caused by the execution of binding instructions given by the parent company. The parent company must bear subsidiary liability for the debt of the daughter company in the case of bank - ruptcy of the latter if the bankruptcy is caused by the fault of the parent company – ie, when the damage is caused as the result of the execution of binding instructions given by the parent company.
and legislation regulating different types of state ser - vice (civil service, military and diplomatic service, etc) regulate particular types of labour relations. Finally, specific aspects of labour relations are regulated by the Law on Foreigners, the Law on Labour and Col - lective Agreements, and internal and individual legal acts of the employer. 4.2 Characteristics of Employment Contracts The Labour Code mandates that employment con - tracts should be concluded or issued in writing and should contain specific terms, such as: • the date, month, year and location of adopting an individual legal act or concluding an employment contract; • the employee’s first and last name, as well as their patronymic name; • the name of the organisation or, if applicable, the first and last name of the employer as an individual, and their patronymic name; • the place of work; • the organisational unit within the company, if appli - cable; • the date, month and year when the employment begins; • the employee’s Social Security Number (SSN) or the reference number of a certificate confirming its absence; this does not apply to foreign citizens or stateless persons who do not hold Armenian resi - dency and are performing their duties from abroad; • the employee’s email address; • the job title and/or job responsibilities, or a refer - ence to the document defining the functions stem - ming from the position; • the base salary amount (including taxes, social payments, or other mandatory payments stipulated by law) and/or the method used to determine it (hourly, daily, piecework, or monthly rate); • additional allowances, bonuses, subsidies, etc, which are/shall be provided to employees accord - ing to established procedures; • the duration of validity for the individual legal act or employment contract if required; • the duration and conditions of the probationary period (where applicable); • the work schedule (normal working hours, part- time, reduced working hours, or cumulative
4. Employment Law 4.1 Nature of Applicable Regulations
The primary sources regulating labour relations in Armenia are the Labour Code and relevant interna - tional treaties. Specific regulations of the Civil Code
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