New regime on SAs in force

Law 3604/2007 amending Law 2190/1920 on SA (Société Anonym) has entered into force as of 08-Aug-07.

The new provisions aim at modernising the current regime, which has to a certain extent been outdated by commercial practice and lack of flexibility in day-to-day operations mainly for small enterprises. The reform aims at (a) reducing excessive administrative control for setting up and operating an SA, (b) strengthening shareholders’ rights, (c) allowing for more flexibility in laying down the provisions of the Articles of Association, (d) simplifying and facilitating the functioning of the company, offering more business choices for the parties concerned and (e) revising the provisions of Law 2190/1920 in a number of key areas concerning the legal framework applicable.