In the context of the companies’ privatization program currently underway, the National Assembly approved important measures aimed at safeguarding the strategic interests of the State in the companies subject of privatization, and in the commercial companies acting in strategic sectors and in which the State, directly or indirectly, holds a minority equity interest.

To that effect, Law No. 34/20, of 5 October 2020, introduced new rules on the Law on the State Enterprise Sector, which determine, inter alia: (i) the creation, for the benefit of the State, of golden shares in the companies operating in strategic sectors (energy, water, telecommunications, and public transports) and which grant, amongst other powers, a veto right in certain matters, namely the amendment of the company’s articles of association or the appointment of directors; (ii) the possibility of creating such golden shares in the companies to be privatized; (iii) the possibility of granting to the State similar special rights in private limited liability companies by quotas operating in sectors of strategic public interest; and (iv) the mandatory attendance, in person, of the the State-appointed members of the management bodies of said companies in one third of the annual meetings of their respective board of directors, on pain of removal for cause.

The rights conferred upon the State under this Law and referred to in (i) above took effect as at the effective date of said Law, without any other formalities being required on the part of the State or the other shareholders.

Law No. 34/20, of 5 October 2020, became effective on the date of its publication. 

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