site.btaAnti-Corruption Commission Finds No Violations in Sofia Mayor Terziev’s Shareholding in Joint-Stock Company

The Anti-Corruption Commission (ACC) has investigated Sofia Mayor Vassil Terziev’s shareholding in a joint stock company for incompatibility since the start of his term in office and found no violations. The decision, dated November 17, was published on the ACC website.

The review was launched following a non-anonymous report received on July 4. The report alleged that Terziev, having taken the oath of office as mayor on November 13, 2023, has since been subject to the statutory prohibition on engaging in commercial activity under the Commercial Act. It claimed, however, that he continued to be linked to a specific company and its operations. The decision to open the procedure was made on July 14. 

Under the law, within one month of taking the oath, any person elected mayor who holds a position or carries out activities qualifying as commercial activity must take the necessary steps to terminate that activity and/or be released from the relevant position, and must notify in writing the chair of the municipal council and the municipal election commission.

In the course of the review, the Commission requested documents from Sofia Municipality. It also carried out internal checks in the national population database, the Commercial Register and Register of Non-Profit Legal Entities, and with the Sofia Municipal Election Commission.

The review found that Terziev had complied with statutory requirements and, within the one-month period after taking the oath, had undertaken and completed all necessary actions relating to commercial activity. 

According to the Commission, Terziev is not a member of the management or supervisory bodies of the joint-stock company. His participation in the General Meeting cannot be regarded as participation in a management or supervisory body, as the General Meeting is not the supreme governing body of a joint-stock company, this role is held by the Board of Directors, the Commission noted. 

The ACC also stressed that an individual’s participation in a joint-stock company, including the acquisition, holding and sale of shares, does not in itself constitute the exercise of commercial activity under the Commercial Act. Participation as a shareholder in this form of capital company is passive and purely proprietary, the decision states. It adds that Terziev acts solely as a shareholder in the company.