Documents on reform of Ltd companies published in Moldova's Official Journal

Chisinau, 22 August /MOLDPRES/ - The decree on the promulgation of the law for the amendment of normative acts (regulation of the relations between the associates/founders of commercial societies) today was published in the Official Journal (Monitorul Oficial) and will enter into force in two months.   

As a result of the new regulations, the entrepreneurs, especially the ones associated in limited liability companies (Ltd companies), will get more freedom for the growing and development of businesses and will have less bans in terms of law.  

The amendments provide decision-making alternatives for associates, possibility to use contemporary corporate governance systems, specify the rights of the associates and facilitate the procedures of use of these rights, simplify and optimize the procedures. Among the new provisions, there is the exclusion of the maximal threshold of the number of associates for Ltd companies, proceeding from the good international practices which do not envisage such limits.   

Also, the contract on setting up and the status of the company, which to a great extent, overlap, will be merged into a single constitutive act. The amendment will simplify the task of both economic agents and state’s institutions. As for the companies’ registered share capital, decision-makers propose the removal of the current restrictions, so that the share capital can be created or increased at the expense of the assets, including the consumable ones.  

At the same time, the assemblies of associates will be able to be held online and without procedures of summoning and the documents will be able to be preserved in electronic format; the starting of business by Diaspora citizens is encouraged in this way. Also, the associates will have right to be represented by a manager, who could be legal entity too. The decisions at meetings will be taken with fewer votes: two thirds and not three fourths, in order to de-block the decisions.    

The present law enters into forcers upon the expiration of two months after the date of their publication in Moldova’s Official Journal. The government, in a period of six months after the date of the entry into force of the current decision, will bring its normative acts in line with its provisions.

Source: monitorul.gov.md