OWNERSHIP FROM OVER TWO MILLION BULGARIANS CAN BE CONFISE
Bulgarian Industrial Capital Association (BICA) wants the immediate withdrawal of the so-called “dormant shares” bill, which threatens more than 2 million Bulgarians with the loss of ownership of the securities they acquired during privatization.
BICA reminds that the four nationally representative employers’ organizations – BICA, BIA, BCCI and CEIBG, united in AOBЕ, as well as CITUB, Podkrepa, the Association of Investor Relations Directors have categorically opposed the concept, now materialized in a bill. in Bulgaria, the Bulgarian Association of Supplementary Pension Insurance Companies, the National Commission for Corporate Governance and other capital market associations, the Ombudsman of the Republic of Bulgaria, the Ministry of Justice, lawyers and shareholders. Most of them have already confirmed their position, calling in their opinions for the bill to be withdrawn. The opinions of organizations and citizens, published on the Portal for public consultations of the Council of Ministers, can be read at: http://www.strategy.bg/PublicConsultations/View.aspx?lang=bg-BG&Id=5149
The draft law stipulates the obligation of the shareholders to transfer their securities from Register A to Central Depository AD within one year, where they are stored free of charge and securely for the shareholder, in Register B to the account of an investment intermediary, where they will bear the risk. to the intermediary and will owe fees. People who do not know that they own such shares (heirs) or do not look for them will lose them, because the state will transfer them for shares at an unknown price to a specially created fund to manage them in an unknown way and by an unknown person.
The text also states that upon expiration of the second additional term and failure to take action by the shareholders, the monetary equivalent of the shares will be paid into the state budget, so the previous owner loses all rights he had.
The bill contradicts the Constitution of the country and the Treaty on the Functioning of the EU and will have an extremely negative impact on the capital market and the economy of Bulgaria. Nothing requires such measures to be taken in our country, and we can definitely say that there is no country in the EU in which there is such a practice. The Commercial Law and the Law on Public Offering of Securities regulate the matter sufficiently clearly and unambiguously. It is incomprehensible to us what interests such unacceptable attempts to confiscate private property require.
In addition to all the losses that these over 2 million Bulgarians will suffer, BICA believes that the risk of our country being deleted as an investment destination is huge, as investors will not have any security for their private property.
The association is adamant that the proposed bill, based on the “disinterest” of the shareholders, does not differ in any way from the confiscation of a bank deposit, on which its holder has not deposited or withdrawn amounts for some time.
The Industrial Capital Association in Bulgaria and other employers’ organizations and associations on the capital market have repeatedly stated their readiness to participate in expert groups to discuss effective, market and legal measures to activate the securities market, but the bill “Or sell at a loss, or you lose everything ”(also known as a draft law on the settlement of relations related to personal accounts for dematerialized securities kept in the registration system of Central Depository AD) must be withdrawn as contrary to the rule of law, harmful to people and harmful for the economy.
Employers and trade unions requested the convening of an extraordinary meeting of the National Council for Tripartite Cooperation to discuss the draft Law on settling relations related to personal accounts for dematerialized securities kept in the central register of securities by Central Depository AD. The meeting was convened for 10.06.2020.