Moldovan limited companies to have right to issue bonds

Chisinau, May 19 / MOLDPRES /- A draft law offering limited liability companies the right to issue bonds was approved in the first reading by the parliament today.

According to the document, the issuance of bonds will allow Ltds to attract loans to finance the activity, both internally and externally, encouraging competition in the financial instruments market, increasing investment, boosting the development of the business environment.

The issue of the bonds will be decided by the decision of the general meeting of shareholders, and the issuance procedure will be carried out on the basis and according to the provisions of the company's statute.

At the same time, the proposed amendments regulate the issues regarding the limits and protection of the right of holders of information bonds; company documents, which regulate the particularities of issuing bonds; distribution of net profit in the event of unpaid bonds; the powers of the general meeting with regard to the issuance of bonds; liability of the administrator of the company for violating the rights of bondholders; the investment with executory formula of the contract of sale-purchase of the bonds.

Photo: Parliament