ZAGREB, May 15 (Hina) - The Croatian government on Thursday forwarded to parliament amendments to the Company Act and Act on Distress whose purpose is to prevent the stalling of distress procedures and protect creditors
better.
ZAGREB, May 15 (Hina) - The Croatian government on Thursday
forwarded to parliament amendments to the Company Act and Act on
Distress whose purpose is to prevent the stalling of distress
procedures and protect creditors better. #L#
According to the amendments, existing companies and those which are
to be established will have to have at least 200,000 kuna
(EUR26,000) of stock capital instead of the current 30,000 German
marks.
The lowest nominal share price would be decreased from 100 to 10
kuna, which should facilitate trading in shares.
The changes also introduce and elaborate on the possibility of a
company issuing stock without a nominal price, in which case the
rights of share holders would be determined by the number of
shares.
According to data published in early January, 93,050 companies,
foreign branch offices and individual traders were entered in the
commercial court registry.
The amendments to the Law on Distress are part of the reform of the
judiciary. Current provisions of the law make it possible to delay
distress procedures, are more protective of debtors than creditors
and distress often takes longer than the court proceedings or even
turns into court proceedings, said Justice Minister Ingrid
Anticevic-Marinovic. She said the current situation was
unsustainable.
(hina) lml sb