site.btaMPs Reject Changes to Commerce Act Introducing Variable Capital Companies

During Parliament's sitting on Wednesday, MPs rejected on first reading Commerce Act amendments introducing variable capital companies in regard to start-up companies and adopted three other bills related to bankruptcy proceedings and leasing relations. The bill introducing companies with variable capital was introduced by Milen Mateev from Continue the Change but was rejected after a re-vote with 96 votes in favour, 107 votes against and five abstentions.

Deputies adopted on first reading three other bills amending the Commerce Act. A bill submitted by the Council of Ministers, related to reforms included in the National Recovery and Resilience Plan, regulates efficiency in bankruptcy proceedings, improves on stabilization proceedings, establishes a bankruptcy procedure and the repayment of obligations by entrepreneurs.

With 125 votes in favour, 18 votes against and 66 abstentions, a bill tabled by Democratic Bulgaria passed on first reading. It also improves bankruptcy proceedings and introduces provisions from Directive (EU) 2019/1023 of the European Parliament from 20 June 2019, as part of the measures under the National Recovery and Resilience Plan.

The third bill, tabled by the Vazrazhdane paty, proposed that in the event of illegal confiscation of a leased object insured in favour of the lessor, each of the parties shall have the right to cancel the contract retroactively, in which case the lessee shall have the right to receive back all amounts paid for the leased object.