Romania’s Fondul Proprietatea Share Transactions Now Regulated

"As the fund is not listed on the stock market, we apply the law on commercial companies. Holders may sell their shares in compliance with Law 31. The Central Depository may operate sales of shares in the fund after the government decision takes effect. The fund’s by-laws had to be amended to clarify this aspect," Adriana Tanasoiu, general manager of Romania’s central securities depository, told MEDIAFAX.

 

The Government approved, in December 2007, a decision amending the fund’s by-laws. This decision states the methods of share sale. The decision was published Friday in the Official Gazette.

 

The provisions of the by-laws will be amended with Law 31/1990 on companies, republished, while capital market legislation will apply to Fondul Proprietatea as soon as the fund enters the Bucharest Stock Exchange.

 

The previous legislation contained a blurry provision, which did not state the operations that can be performed with Fondul Proprietatea shares before bourse floating.

 

Therefore, the sale of shares held in Fondul Proprietatea before bourse floating was risky, since there was the danger that the transaction be cancelled through legal action.

 

Starting October 2007, former owners of nationalized buildings were allowed to choose cash compensation of up to RON500,000 instead of shares in the fund, which is pending listing on the Bucharest Stock Exchange.

 

The Fund was set up in December 2005 to compensate Romanians whose property, seized during communism, could not be returned in kind.