The ownership threshold above which limits can be imposed on voting powers in joint stock companies has been lowered to 10% from 20% of the company's shares.
The new limit will apply to shareholders as well as to pledgees and usufructuaries of shares.
Joint stock companies sometimes choose to impose a limit of shareholder voting rights to help protect itself against a hostile takeover. For example, it might state that only half a vote is available for shares above the shareholding threshold.
The change now needs to be accepted by the Senate and signed by the President. It will come into force 30 days after its publication in the Official Gazette.
Law: draft legislation to amend the Commercial Companies Code
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The original publication date for this article was 03/06/2009.