Experts Take Stand against Idea for Putting Inactive Shares from Mass Privatization from 20 Years Back into Dedicated Investment Fund
107 ECONOMY-MASS PRIVATIZATION SHARES-IDEA-OBJECTION
Experts Take Stand against
Idea for Putting Inactive Shares from Mass Privatization from 20 Years Back into Dedicated Investment Fund
Sofia, January 25 (BTA) - The Association of Directors in Charge of Investor Liaisons objects to the government's idea to nationalize the so-called dormant or inactive shares in the mass privatization from more than 20 years ago. The Finance Ministry published a concept for the administration of the shares, according to which if owners of shares or heirs thereof do not transfer the shares to an investment intermediary within one year, the shares will be put into a dedicated investment fund, in exchange for interest in the fund, without the presence of an express will to this effect by the owners.
In a position received by BTA, the Association of Directors in Charge of Investor Liaisons argues that this infringes on the interests of shareholders in public companies. It is claimed that such a measure of disposal of private property, i.e., without the express will of the shares owner, constitutes a violation of the right to ownership, as a set of the right of possession, right of use and right of disposal. The Association also says that the suggested way of dealing with the dormant mass privatization shares may have a negative impact on the security of ownership, on the investor activity, and on the development of the stock market in general. LY/ZH//