Legislation Related to Share Transfers in Bulgaria
Legislation Related to Share Transfers in BulgariaUpdated on Wednesday 08th February 2017
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The stocks of a Bulgarian company may be transferred as per the conditions and/or restrictions included in the Articles of Association.
The Bulgarian Commercial Act does not include any express provisions on the limitations imposed on the transfer of shares. However, restricted transferability may apply and it is recommended that you seek adequate legal aid before entering a share transfer agreement.
One of our lawyers in Bulgaria can help you arrange company share transfers, according to the company’s internal rules and regulations and your rights as a company shareholder.
Transferring company shares in Bulgaria
The transfer of company shares in Bulgaria will depend on the type or types of shares that are being transferred. Registered shares may be transferred with an endorsement, meaning that they must include the name of the new holder. This transfer must also be included in the Shareholder’s evidence which includes all of those company shareholders who own registered shares. These types of shares may be acquired at their issuing price or their nominal value.
The redeemable shares can be transferred only to the company itself and there are special regulations for the re-purchase of shares within a company. Dematerialized stocks can also be transferred.
Selling or buying company shares in Bulgaria
Investors must be aware of the fact that the share or transfer of company stock is possible for certain type of companies that allow this in their constitutive documents. For example, Bulgarian limited liability companies are not incorporated to allow this type of public share transfer and listing. Different provisions will apply for these type of companies.
You can talk to one of the experts at our law firm in Bulgaria if you are interested in purchasing shares in a Bulgarian company. Our experts can detail your available possibilities if you are a foreign investor doing business in the country.
Contact our lawyers in Bulgaria for detailed answers to any of your questions concerning the laws for share transfers in Bulgaria.