Moldova to reduce bureaucracy and simplify decision-making procedures in limited liability companies.
Deputy Prime Minister and head of the Ministry of Economic Development and Digitalization Dumitru Alaiba presented on Thursday the corresponding draft amendments to the legislation (the so-called "Reforma SRL" bill). The reform introduces innovations in the legal framework, which will facilitate in limited liability companies some procedures that hinder business development. Thus, anti-discriminatory ideas, which are contained in the European norms, will be transposed into the national legislation. Thus, the rights of the founders of the LLC will no longer depend on the share of their investment in the authorized capital. Withdrawal from the founders of a minority partner, owning less than 50% of the authorized capital, will be possible without the consent of the other co-founders. A more flexible approach in profit distribution is envisaged: the concept of "non-proportional distribution" is introduced, whereby profits can be distributed regardless of the founder's share in the authorized capital of the company. It is also proposed to provide investors with access to an extended statement of information about the LLC. At the same time new opportunities in the decision-making process are provided: the maximum number of founders of LLC (up to 50) will be excluded; the only founding document will be an extract of the Public Services Agency, and the State Register will be the main source of official information; there will be more opportunities for formation of the authorized capital. In addition, the co-founders will have more rights: greater access to information and documentation of LLC; the administrator will be able to represent the rights of the founder; decisions can be taken by 2/3 of the vote, not 3/4; the administrator can also be a legal person. The legal wording of some concepts will be simplified: instead of "statement" and "reporting" the term "report" will be used, instead of "financial statements" - "financial report", instead of "approved the financial statements" - "reviewed the financial report", etc. According to Dumitru Alaiba, the proposed changes will simplify the LLC management processes, make them simpler and clearer for all stakeholders. This will also provide business with more freedom for growth and development. The draft was worked out by a working group, which included representatives of ministries and departments, the Economic Council under the Prime Minister, and businesses - the American Chamber of Commerce in Moldova, the Foreign Investors Association, the European Business Association, the Alliance of Small and Medium Enterprises of Moldova. The bill will have to be approved by the government, after which it will be sent to the parliament for consideration. // 20.04.2023 – InfoMarket
