Shareholders’ Rights Directive II and the Bulgarian law on related party transactions

January 31, 2020

The revised EU Shareholders’ Rights Directive (2017/828/EU) (“SRD II”) was due to be implemented into national law by 10 June 2019, but most EU member states missed this deadline. The Bulgarian legislative proposal implementing SRD II was submitted to the parliament in November 2019 and is expected to be approved and come into effect soon.

Below we outline certain aspects of the current and proposed new Bulgarian related parties’ transactions (“RPTs”) rules, applicable to listed companies (adopted far back in 2002), in the context of the SRD II’s RPTs provisions.

 

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