The long-awaited reform of the Greek Law on Sociétés Anonymes

The long-awaited reform of the Greek Law on Sociétés Anonymes

It has been common ground that the legislative framework on sociétés anonymes (SAs) originally legislated back in 1920, has been, despite the various reforms since then, to some extent dysfunctional and “old-fashioned”. The limited and fragmental reform to the C.L. 2190/1920 in 2007 through Law 3604/2007 as well as a number of other amendments effected mainly for the purposes of transposing into the Greek jurisdiction company law related EU Directives were not proven sufficient to redress the above.

Law 4548/2018, which was passed by the Hellenic Parliament on June 13, 2018 and was published in the Government Gazette no. 104/13.06.2018, introduces an overall and significant reform to the respective legislative framework. The scope of such reform is two – fold:

  1. To systemize the rules regulating the SAs by (a) consolidating to the extent possible into one legal instrument all the various provisions dispersed in various laws; (b) abolishing rules, which were long outdated; and (c) enacting rules to adopt matters, which have been extensively applied in legal practice despite the lack of explicit regulation under the C.L. 2190/1920;
  2. To introduce innovative rules and modernize the law on SAs aiming to render the legislative framework more flexible and business friendly, to moderate administrative burdens and to focus state supervision to those entities, which attract public interest. In this context, the Law in certain cases draws a distinction on the application of certain obligations depending on whether an SA is a large undertaking, a medium sized, a small or a micro-undertaking, or a public interest entity.

KG Law Firm has prepared a document that aims to give the reader a small taste of the major revisions brought by this law.

 

 

 

 

 

It has been common ground that the legislative framework on sociétés anonymes (SAs) originally legislated back in 1920, has been, despite the various reforms since then, to some extent dysfunctional and “old-fashioned”. The limited and fragmental reform to the C.L. 2190/1920 in 2007 through Law 3604/2007 as well as a number of other amendments effected mainly for the purposes of transposing into the Greek jurisdiction company law related EU Directives were not proven sufficient to redress the above.

Law 4548/2018, which was passed by the Hellenic Parliament on June 13, 2018 and was published in the Government Gazette no. 104/13.06.2018, introduces an overall and significant reform to the respective legislative framework. The scope of such reform is two – fold:

  1. To systemize the rules regulating the SAs by (a) consolidating to the extent possible into one legal instrument all the various provisions dispersed in various laws; (b) abolishing rules, which were long outdated; and (c) enacting rules to adopt matters, which have been extensively applied in legal practice despite the lack of explicit regulation under the C.L. 2190/1920;
  2. To introduce innovative rules and modernize the law on SAs aiming to render the legislative framework more flexible and business friendly, to moderate administrative burdens and to focus state supervision to those entities, which attract public interest. In this context, the Law in certain cases draws a distinction on the application of certain obligations depending on whether an SA is a large undertaking, a medium sized, a small or a micro-undertaking, or a public interest entity.

KG Law Firm has prepared a document that aims to give the reader a small taste of the major revisions brought by this law.