ZAGREB, July 3 (Hina) - All the parliamentary benches on Thursday supported the Croatian government-sponsored final bill of amendments to the Company Act, aimed at improving the position of share-holders and the set-up of greater
responsibility of members of managing and supervisory boards.
ZAGREB, July 3 (Hina) - All the parliamentary benches on Thursday
supported the Croatian government-sponsored final bill of
amendments to the Company Act, aimed at improving the position of
share-holders and the set-up of greater responsibility of members
of managing and supervisory boards. #L#
MPs agreed that it was necessary to adjust the national legislation
with the European Union's laws in the field of regulating
activities of companies and in the protection of small share-
holders and creditors. #L#
Ljubica Lalic of the Croatian Peasant Party (HSS) spoke about bad
effects of the ownership transformation and privatisation carried
out in mid-1990s, which she said led to huge gaps among social
layers and caused social injustices. It is necessary to create
high-quality work of the judiciary and ensure the enforcement of
pertinent laws to prevent such phenomena in the future, Lalic
added.
The bench of the Social Democratic Party (SDP) believes that
amendments to the Company Act, which was adopted in 1995, could
contribute to the development of Croatia's economy and to better
effects of commercial law as well as ensure the efficiency of the
judiciary in that field.
Vesna Skare Ozbolt of the Democratic Centre (DC) hailed provisions
which envisaged higher responsibility of members of managing and
supervisory boards, particularly the possibility that they should
compensate losses by their own funds in cases of the abuse of
office.
Nikica Valentic of the strongest opposition Croatian Democratic
Union (HDZ) supported the draft amendments, but proposed that it
would have been better to prepare the adoption of a brand new law
instead of drawing up amendments to more than a half provisions of
the current law.
The purpose of the bill of amendments is to improve the position of
small share-holders, protect creditors, increase the legal
security and flow of information, tighten the control over the
company's activities and increase the responsibility of members of
managing and supervisory boards.
The law should be adjusted to laws on distress, bankruptcy, the
securities market and joint stock companies.
(hina) ms