The government of the Russian Federation plans to unite housing and communal services funds and protect the rights of equity holders

The Russian government plans to combine funds for housing and communal services and protection of the rights of equity holders. The bill submitted to the State Duma of the Russian Federation envisages the creation of a public-law company "Territorial Development Fund".

The explanatory note to the document notes that the best option seems to be the reorganization of the Fund for the Protection of the Rights of Shareholders and the Housing and Utilities Fund with a simultaneous combination of transformation into a new public company in order to implement existing functions and new powers determined by the status of a single development institution.

The Territorial Development Fund will become the legal successor of these organizations and the functions they perform, therefore it will inherit the functions of two institutions at once.

“The considered merger of legal entities should be carried out from the beginning of the next financial year. In this regard, a special date is provided for the entry into force of the bill - from January 1, 2022, with the exception of certain provisions related to the creation and legal status of the "Territorial Development Fund", - is specified in the explanatory note to the document.