The ownership threshold above which limits can be imposed on voting powers in joint stock companies has been lowered to 10% from 20% of the company's shares.
The new limit will apply to shareholders as well as to pledgees and usufructuaries of shares.
Joint stock companies sometimes choose to impose a limit of shareholder voting rights to help protect itself against a hostile takeover. For example, it might state that only half a vote is available for shares above the shareholding threshold.
The change now needs to be accepted by the Senate and signed by the President. It will come into force 30 days after its publication in the Official Gazette.
Law: draft legislation to amend the Commercial Companies Code
This article was written for Law-Now, CMS Cameron McKenna's free online information service. To register for Law-Now, please go to www.law-now.com/law-now/mondaq
Law-Now information is for general purposes and guidance only. The information and opinions expressed in all Law-Now articles are not necessarily comprehensive and do not purport to give professional or legal advice. All Law-Now information relates to circumstances prevailing at the date of its original publication and may not have been updated to reflect subsequent developments.
The original publication date for this article was 03/06/2009.
