Bill to the Bank Insolvency Act has been submitted to the National Assembly
The Ministry of Finance has submitted a bill to the National Assembly for amendment of the Bank Insolvency Act which aims to introduce certain rights to directors of banks with revoked licenses and to the large shareholders thereof. These amendments are contained in the transitional and closing provisions of a bill to the Recovery and Restructuring of Credit Institutions and Investment Intermediaries Act.
The proposed amendments will allow directors of banks with revoked licenses to participate in insolvency proceedings. Currently, such banks are represented by receivers appointed by the Bulgarian National Bank (BNB) or by temporary receivers, and shareholders holding more than 5% of the bank’s capital are entitled to participate in the proceedings unlike the bank’s directors.
Another proposed amendment in this regard is the right to shareholders participating in insolvency proceedings to appeal the most important decisions related to insolvency: for opening of insolvency proceedings, for declaring the bank’s insolvency and its initial date, and for termination of the powers of its bodies.