Shareholders who own less than 5% of company’s equity remain unknown

By Рада Исовска-Маневска On Nov 24, 2018 0

Photo: pxhere.com

SDSM’s promise given for the snap general elections in 2016 is not fulfilled yet.

PROMISE: We shall introduce a legal obligation for full ownership transparency of the companies. This means that even shareholders who own less than 5% of company’s equity must be made public.

[Source: SDSM’s program for the snap general elections in 2016 “Plan for Life in Macedonia”, page 232]

EXPLANATION:

Although promised, SDSM’s promise that it shall demand full transparency from companies and shall publish the shareholders who own less than 5% of company’s equity is unfulfilled. This promise of SDSM’s was given for the snap general elections in 2016 and it is laid down in the program “Plan for Life in Macedonia” section on the first six months of Government’s tenure.

In the meantime, the Government has drafted amendments to the Law on Securities, which prescribe extension of the mandatory listing deadline and allow settlement of cross-border transactions by connecting the depositary with foreign depositaries, but these proposed amendments won’t affect the publication of the shareholders who own less than 5% of the equity.

The Ministry of Finance, in charge of drafting amendments to the Law on Securities, and the Ministry of Economy, in charge of drafting amendments to the Law on Companies, haven’t announced that they have been working on amendments to these laws, which, after they are passed, shall made the publication of owners of less than 5% of company’s equity mandatory.

The provisions of the law passed in 2016 are still into force on the websites of the Commission for Securities and the Central Securities Depository and they do not feature information on shareholders who own less than 5% of company’s equity.

To enhance companies’ transparency, the Government proposed amendments to the Law on Companies which delete the provisions on secret companies in order to augment the transparency in the legal transactions and lower the possibility of tax evasion.

The passed amendments to the Law on Prevention of Money Laundering and Financing of Terrorism include a register of real owners of companies, but it will start functioning as of October next year.

Therefore, SDSM’s promise given for the snap general elections in 2016 saying that during the first six months in office (by the end of November 2017), the Government shall provide full transparency of companies by obligating them to publish the shareholders who own less than 5% of the equity is not fulfilled yet.

SOURCES:

Program of SDSM (2016): “Plan for Life in Macedonia” (page 232) (Accessed on 19 November 2018)
Akademik.mk (19 April 2018): Измените на Законот за хартии од вредност во собраниска процедура (Accessed on 19 November 2018)
Pravdiko (21 June 2018): Предлог закон за изменување на Закон за трговски друштва.(Accessed on 19 November 2018)
A1on (25 October 2018): Централен регистар од следната година ќе ги регистрира вистинските сопственици во фирмите (Accessed on 19 November 2018)
Ministry of Finance (26 June 2018): New Law on Prevention of Money Laundering: Public functionaries under increased scrutiny (Accessed on 19 November 2018)
Commission for Securities (Accessed on 19 November 2018)
Central Securities Depository (Accessed on 19 November 2018)
Law on Securities (Accessed on 19 November 2018)
Ministry of Economy Law on Companies (Accessed on 19 November 2018)

Assessed by: Rada Isovska-Manevska

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