The activity of state-owned and municipal enterprises will be regulated by a new law whose draft was approved by the Cabinet and is to be passed by Parliament, IPN reports.

The bill regulates the foundation, functioning and closing of state-owned and municipal enterprises, the management of property transferred to these, the reorganization or dissolution process, the composition, powers and responsibility of administrative bodies, etc.

The draft law sets a share capital minimum of 5,000 lei for these enterprises and institutes a special legal distinct registration regime for public and social property so that this could not be sold.

The powers of the administration board will be extended. The board will determine the performance indicators of enterprises and assessment criteria, will approve the business plan and will monitor its implementation, and will also select the enterprise’s manager at a contest.

The powers of founders and managers of state-owned and municipal enterprises will also be extended. In particular, the founder is to authorize the purchase of property whose values exceeds 25% of the value of net assets or the sum of 400,000 lei.

There will be set up censor commissions that will examine the economic and financial activities of enterprises, including the procurement procedures, each semester.

The document also regulates the voluntary dissolution of state-owned and municipal enterprises given that about 320 state-owned enterprises now do not work and are to be liquidated. A two-year time limit is set for reorganizing state-owned and municipal enterprises into commercial organizations or public institutions.

In 2016, the local public authorities managed 550 municipal enterprises, while the central public authorities ran 250 state-owned enterprises.