Through the proposed compromise amendment and appeal to the National Assembly of the Republic of Slovenia, VZMD has at least attempted to alleviate the catastrophic impact of the proposed amending act of the Book Entry Securities Act (ZNVP-1). VZMD's Expert Council - in light of the adversarial meeting of the Finance and Monetary Policy Council on Wednesday, September 2, 2015 - propose the following:
1. delay of the due date for abolishment of registry accounts until 2017 for natural persons (individual investors), with which their obligation to pay compensation for maintaining accounts would cease already for the entire 2016, although they would have open accounts for 3 months at most;
2. court fee suspension (which is, subject to paragraph 5 of the Article 10 of the Court Fee Act, a systemically relevant solution), whereby, in case of the lodgment of security deposits, also the probability of numerous individual disputes which may be raised by affected persons (particularly small shareholders) shall decrease in each individual procedure involving court deposits.
In this regard, VZMD has been appealing to the deputies of the National Assembly to make necessary efforts, in case registry account abolishment is inevitable, at least to alleviate detrimental consequences - both of social (higher costs, less transparency) and corporate nature (retreat of minority shareholders leading to ownership consolidation, poorer control).
The proposed amending act of ZNVP-1, which is about to be adopted in the National Assembly of the Republic of Slovenia, would have severe consequences for the capital market, particularly for over 260,000 Slovenian minority shareholders (individual investors), who might be the next year relentlessly deleted from the register of shareholders, that is, they might lose their shares in the face of abolishment of (their) registry accounts at the Central Securities Clearing Corporation (KDD), or »punished« with the court fees for the automatic court deposits of their shares. For this reason, VZMD has been persistent in objecting to this amending act of ZNVP-1, which was reiterated by the VZMD President, Mr. Kristjan Verbič, in the meeting of the Finance and Monetary Policy Council of the National Assembly of the Republic of Slovenia on Wednesday, September 2, 2015. (RECORDING of the meeting – VZMD caveats and proposals from 51:40 minute onwards)
Note that VZMD sent an urgency, to the Ministry of Finance of the Republic of Slovenia in February, with which they reiterated that Ministry, among other things, was proposing termination of registry accounts at KDD, obscuring ownership structures, lowering the level of legal security, making it more difficult to attend meetings, additional financial and social burdens, explicitly reducing the number of minority shareholders (individual investors) and the proportion of local ownership in Slovenian companies etc. Even beforehand, VZMD had frequently voiced against the proposed termination of the registry accounts (inter alia also using the remarks and proposals regarding the ZNVP on October 28, 2014, November 26, 2014 and February 5, 2015), in addition VZMD has since October 2014 been actively engaged in harmonizing the text of the Proposed directive of the European Parliament and Council of the EU regarding changes to the 2007/36/ES directive regarding encouraging the long-term shareholder engagement and the 2013/34/EU directive regarding specific elements of the declaration about corporate governance. Regarding the Proposed directive directly related to the Proposed amending act of ZNVP, VZMD sent its remarks and proposals as early as on October 2014 - in line with the Better Finance proposals (European Federation of Financial Services, where Mr. Verbič is a member of the Executive Board) - also directly to the Ministry for Economic Development and Technology.
Even before and during the very meeting of the Finance and Monetary Policy Council of the National Assembly of the Republic of Slovenia, VZMD firmly advocated at least the change to the Article 48 of the Proposed amending act of ZNVP-1, which seems to be only serious possibility to encroach upon the Proposed amendment. One of the possible solutions, for instance, would be not to pay the court fee in case of the court deposits. Ministry of Finance of the Republic of Slovenia, has stated in writing that it would not support such proposal as allegedly the court fee payment is governed by the Court Fee Act. Thereafter VZMD pointed out that the fifth paragraph of Article 10 of the Court Fee Act provides: "(5) The fee shall not be paid, if this has been provided by a special act". Such option has been applied in the Labor and Social Courts Act for collective labor disputes (Article 57) and social disputes (Article 71).
The adequate change in the meeting of the Council was unfortunately not adopted, however the deputies Mr. Luka Mesec (ZL), Mr. Uroš Prikl (DeSUS) and Mr. Janko Veber (SD), indirectly also Urška Ban (SMC), the chair of the Council, took a stand to find an appropriate compromise solution for the mentioned problems by the time of the adoption of the Act in the plenary session of the National Assembly of the Republic of Slovenia. VZMD shall be actively engaged in finding this compromise solution, whereby - in the capacity of an expressly civil-society association - it continues to maintain an entirely equal approach and attitude to all (parliamentary) political parties or deputy groups in the National Assembly of the Republic of Slovenia.
Other Related International Activities:
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»PLUNDER OF THE CENTURY« - VIDEO CONFRONTATION & disclosure of misleading statements of the Bank of Slovenia, the previous Slovenian government and other protagonists of the highly questionable 2013 bank restructuring, involving mass expropriation of citizens
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STRESS TESTS – new and obvious proof of the extremely unequal adjudication of Slovenian banks – are they guilty in Brussels or Ljubljana, and what are their motives? The PanSlovenian Shareholders' Association (VZMD) has called on the Bank of Slovenia (BA) and the European Central Bank (ECB) to explain, why only in Slovenia are we left to use »static« and extremely pessimistic assumptions, while in other countries and banks of the EU fresh data and »dynamic« valuations are used and even allow for
WARSAW - the evening award ceremony, the second day of the »Warsaw Capital Market Summit 2014« international conference and beginning of the conference organized by International Monetary Fund and National Bank of Poland with active participation of VZMD through investo.si and invest-to.net programs (Warsaw, October 2014)
BANK OF SLOVENIA / NLB - unprecedented deceit of renowned international financial companies and investors - VZMD informed them of concealed facts, in its endeavor of protecting investors, and called for inacting supervision, proper sanctions of those responsible, alleviation of consequences, and thus preservation of the remaining reputation of the Republic of Slovenia (Ljubljana, September 2014)
NEW YORK – VZMD President invited to be a guest-speaker at the Annual Conference of the International Financial Litigation Network (IFLN) yesterday – shortly after a successful business delegation in Iran, he also participated in a discussion in the world's financial centre with some distinguished international lawyers and representatives from key law offices regarding the scandalous expropriation of the owners of shares and bonds at Slovenian banks - an alarming case indicating problems in the (New York, May 2014)
EUROPEAN COMMISSION – a reminder to the EU Commission President J.M. Barroso about the unequal treatment of Slovenia, and about the endangered financial, economic and social stability accompanying scandalous expropriation of share and bond owners at Slovenian Banks – a letter of the Civil Society Initiative and NKBM Section at VZMD to the EU Commission President is soon to be presented in the European Parliament as well (Brussels, March 2014)
EXPROPRIATION – VZMD has filed three more lawsuits, this time against the banks, because the entry of subordinated bonds and shares termination in the register has been established as null – further use of all legal remedies to protect the expropriated owners, the signatories to the VZMD Agreement, and granting authority to the law office (Ljubljana, February 2013)
CONSTITUTIONAL COURT acknowledged the legal interest of 290 initiators, united by VZMD who demanded constitutional review of the Banking Act; the Court has given priority to the two VZMD initiatives but suspension of the Act was rejected, due to misleading statements by the Government and the Bank of Slovenia - shares and subordinated bonds of 100.000 owners had been erased in the three biggest Slovenian banks! (Ljubljana, December 2013)
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NKBM = BANKIA – mass protests take place in front of The Central Bank of Spain (CBS) because of national fraud against 350,000 shareholders who are represented by the law firm that is attending, along with VZMD (Pan−Slovenian Shareholders’ Association), the international initiative at CBS. (Madrid, September 2013)
VIDEO REPORT – exclusively from the European Parliament: the EuroFinUse international conference and the Election Assembly, the announcement of the new President and Board of directors of this influential European association, into which a representative of Slovenia is also re-elected (Brussels, March 2013)
BRUSSELS – Slovenia with VZMD once more elected to the top of the European Federation of Financial Services Users – intensive international activities today continue with a conference in the European Parliament (Brussels, March 2013)
TOKYO – conclusion of the visit of Slovene economic and political delegation with Slovenian-Japanese Business & Investment Forum and the reception at Japanese investors’ association – the active role of VZMD with its international investors’ programs investo.si and invest-to.net(Tokyo, March 2013)
INDIA – visit of Slovenian government and business delegation – on the basis of Memorandum between ICPE and VZMD international investors' programs investo.si and invest-to.net also present (New Delhi, February 2013)
Memorandum of cooperation signed between the International Center for Promotion of Enterprises (ICPE) and VZMD, with additional expansion of activities within the framework of international investment programs investo.si and invest-to.net (Ljubljana, January, 2013)
EXCLUSIVE VIDEO REPORT of “International Conference on Benefits and Challenges of Public Private Partnerships for improving Energy Efficiency” – key statements of prominent participants (Ljubljana, October, 2012)
EXCLUSIVE VIDEO REPORT from EuropeanIssuers International Conference on »The future of European Equity Markets« at the Milan Stock Exchange – programs investo.si in invest-to.net also at the upcoming International Investors´ Conference in Wiesbaden (Milano, November 2012)
VIDEO REPORT - International Conference at the Brussels Stock Exchange Stimulated Investors' Representatives and Institutions to Participate at the Investors' Week 2012 in September in Slovenia(Brussels, March 2012)
www.vzmd.si – More on the VZMD – PanSlovenian Shareholders' Association