The State Duma has adopted in the third reading a draft law on holding online meetings of the owners of premises in a block of flats

Pepeliaev Group advises that on 13 May 2020 the Russian State Duma adopted in the third reading Draft Law No. 487583-7 (the ‘Draft Law’)[1], which amends the Russian Housing Code (the ‘Housing Code’) in terms of the procedure for holding general meetings of the owners of premises in a BOF in the form of an absentee voting using information systems.

The procedure for conducting a general meeting of the owners of premises (the ‘Owners’) in a BOF using absentee voting will be changed to simplify the conduct of such meetings. The conduct of general meetings using electronic systems is in demand from owners who do not reside in the BOF or rarely visit their flats or non-residential premises. For instance, in an information system it is possible to notify the Owners of the conduct of the general meeting, hold absentee voting and place information on the results of the voting and decisions adopted.

We note that the Housing Code allows for general meetings of Owners to be held electronically via the state information system for housing and utilities (the ‘SIS HU’). However, to do so it is required to convene an attendee meeting of the Owners and adopt a resolution to use the SUS HU for further absentee voting, which is the main hindrance to using this form of voting.[2]

The draft law eliminates the need for a preliminary general meeting of Owners for adopting a resolution to use information systems for voting.[3] The very first meeting initiated by any of the owners may be held using absentee voting via the SUS HU or a regional information system. At the same time, please note that this rule does not apply to BOFs that are managed directly by the Owners.[4]

In addition to the SUS HU or regional information systems, absentee voting may be held using another information system, such as a private portal used for holding such meetings for a fee.[5] The management companies may independently develop the relevant services. At the same time the choice of another information system different from the SUS HU and regional information system will require that a resolution to this effect be adopted at a preliminary general meeting of the Owners.[6]

The draft law provides for a way for the Owners to block the holding of the first general meeting in electronic form. The blocking is effected by filing with the person managing the BOF written refusals to hold this general meeting from the owners that hold more that fifty percent of the total number of votes of the owners of premises in the BOF.[7]

In addition, according to the Draft Law the period for holding a general meeting of the Owners using the information system is increased from 3-5 days to 7-60 days.[8]

What to think about and what to do

We recommend that owners of premises in blocks of flats study the anticipated amendments to the Housing Code and bear in mind that they can hold general meetings of Owners using absentee voting via information systems and choose the information system for voting.

Help from your adviser

Pepeliaev Group’s lawyers are ready to provide comprehensive legal support to owners of premises in a BOF with respect to any issues arising in connection with general meetings of the Owners and with decisions of such general meetings being challenged.