Shareholders to choose between two management systems

Joint stock companies will be able to choose between two management systems, either a unitary system with a board of directors, where executive positions will be distinct from the other positions, or for a dual system with a directorate and a supervisory board. This is what the draft to modify law 31/1990 that regulates joint stock companies, stipulates, which has recently been approved by the Government. "The draft law has introduced an alternative to the management system made up of a board of directors headed by a chairman, which cumulates management powers and management control powers, providing - a first in the Romanian legislation - for the possibility for joint stock companies to choose to be managed by a directorate with executive, management-related powers, and by a supervisory board with management control powers," comments Cornel Popa, a partner of Tuca, Zbarcea & Asociatii.