Draft Law: New legal amendments applicable to sole shareholder in limited liability company (SRL)

14. January 2020 | Reading Time: 1 Min

Under proposed changes to legislation in the field of corporate law, i.e. Law no. 31/1990 (the Company Law), natural and legal persons will be able to act as sole shareholders in an unlimited number of limited liability companies, as opposed to a single such company as is currently the case.

The proposed changes involve amending the Company Law by entirely repealing art. 14, which only allows an individual or legal person to be the sole shareholder in a single SRL, and by prohibiting limited liability companies from having as their sole shareholder other limited liability companies which are, in turn, held by single shareholders.

Therefore, under the proposed new law, a person would be able to act as the sole shareholder in two or more limited liability companies.

The purpose of the change is to increase the number of companies and entrepreneurial initiatives operating on the Romanian business market.

If promulgated by the Romanian President, the law will enter into force 60 days after the date of its publication in the Official Gazette of Romania.

Source: Draft law amending and supplementing Law no. 31/1990

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