New rules in appointing government representatives in joint stock companies

Persons of high public positions, as well as persons previously removed from such posts for professional transgressions, cannot be appointed to represent the government in joint stock companies where the government holds interests, Info-Prim Neo reports. Also barred are the persons who either individually or together with their associates hold 25% of the company's stock. The main duties of the government representatives are to control the integrity of the use of publicly owned property, to verify the accuracy of dividend transfers to the government, and to provide methodological assistance in the corporate management of the companies. The government representatives must not hold any other posts with economic gain in the respective company, cannot act on behalf of the company in relations with third parties, cannot commission their tasks to other persons or submit complaints to courts and initiate legal action on behalf of the company. The issue of government representatives in joint stock companies has been a long-lasting problem as many were caught stealing, inflating their earnings or engaged in other abusive practices. “These practices appeared because the responsibilities of these representatives as well as the responsibilities of the authorities that delegated them hadn't been clearly established. Making these rules clear is an important condition in the process of monitoring the activity of the government representatives in joint stock companies”, said Economy Minister Valeriu Lazar.

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