The Central Bank of Russia has proposed tightening requirements for bondholder representatives and reforming general meetings of bondholders to strengthen investor protection, particularly when issuers face financial distress. The proposals would introduce capital and business reputation requirements, prohibit issuer-affiliated entities from serving as representatives and expand the circumstances in which issuers must appoint one. Representatives that have been effectively inactive for two years would be removed from the central bank’s list. The meeting reforms would replace the current reliance on approval by three-fourths of all bondholders with a quorum-based mechanism under which the quorum could be reduced if the first meeting fails to attract sufficient participation.
2026-08-26Central Bank of Russia
Central Bank of Russia launches consultation on tighter bondholder representative standards and more flexible bondholder meetings
The Central Bank of Russia has proposed stricter eligibility, independence and activity requirements for bondholder representatives. It also plans a quorum-based meeting framework that could lower participation requirements after an unsuccessful first meeting, making decisions such as debt restructurings easier to conduct.