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February 8, 2023

Senate: Private management for state companies can be partial

The Senate’s Administration Committee adopted on Tuesday several amendments to the bill concerning the private management of state companies, setting that companies undergoing privatisation or those reporting a certain profit quantum are exempt from the effects of the law. For these companies, the solution of private management can be applied only based on a resolution of the Shareholders’ General Assembly, concerning the need to select a private management team. The senators on the committee also modified the article laying-out the basic terms of the private management contract, adding the need to safeguard and facilitate the exercise of the shareholders’ rights, as well as ensuring equal treatment to all shareholders, including the minority or foreign ones. At the same time, other principles added to the bill concern the strategic management of the public enterprise and the responsibility and loyalty of the private manager to the company and its shareholders. The committee also modified the definition of the public company entitled to hire private management. Thus, the law applies to any national company and any legal entity running economic activities, on which the direct or indirect influence of a central or local public authority is exercised.

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