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Varadinov & Co.
Legal Bulletin

Varadinov & Co Attorneys at law is recognised in the IFLR1000
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State Gazette, issue 62/August 1st, 2017
The latest amendments and additions in the Public Offering of Securities Act aims improving the security of the investitures when purchasing corporative obligations and encouraging the access of small and middle sized companies to the capital trade market. The changes are in compliance with the adopted with the participation of the investment community and the Commission for financial control Strategy for development of the capital trade market. Clients’ money stocked in accounts of investment mediators in banks shall be secured for the purpose the Fund for guaranteeing bank deposits to cover them in case of bank insolvency. There is a stipulated possibility the companies to pay off annual, as well as six-month dividends to its shareholders to achieve quicker return of the investments, which shall encourage the investitures for new participation of the trade market. Over all, the order for primary public offering of obligations and its permission to the regulated market is simplified as there are changes at the regulations of the public companies. There has been shortened the terms in which the Commission for financial control shall pronounce for the prospectus of new emitents who are locking for financing from the capital market. For decreasing the administrative penalty from the small companies shall not be required prospectus at gathering money not more than 1 million euro. For primary public offering of securities are allowed also the retirement -insurance companies. For the purpose of limpidity of the trade subjects the figure of the secret client has been established for collecting proves against companies that offer investment services without license, as with the changes of the administrative penalty decrees are increased the minimal and maximal amount of the sanctions. At hard violations of the act that follows the beginning of the public offering made by the controlled persons, their employees, persons under which agreement they accomplish managing functions or conclude contracts on behalf of the controlled persons, their liquidators or assignees in bankruptcy, as well as agents of the bond holders, the Commission for financial control may stop the final sale or the completion of bargains with determined securities of the public company.

State Gazette, issue 63/August 4th, 2017
With the latest amendments of the Penal Procedure Code has been adopted packet of measurements for acceleration of the effectiveness of the cases against the corruption at the major authorities. The jurisdiction of large amount of cases has been amended and they shall already be examined by the specialized justice and the prosecutor’s office. The jurisdiction shall be defined under two cumulative criteria – the kind of the crime and the author of the crime. Under the jurisdiction of the Specialized justice shall be the cases for appropriation, fraud, bribe, the crimes against the monetary, credit, financial, tax, insurance system, employment crimes and against justice, as well as the document crimes. The Specialized justice shall examine these cases only if the defendants are people’s deputies, ministries, vice-ministries, managers of state agencies and commissions, NIC, NHIC, NIA, “Customs” agency, Confiscation commission and the Agency for control of the special investigation instruments, the district governors and their deputies, judges, prosecutors and examining magistrates, members of the Superior Court Council and the court inspectorate.
In the decree for constituting of criminal procedure shall not be pointed the executor, nor shall be used the designation ”unknown executor”. The executor shall be clarified with the prosecution of a person as defendant. By the submitting the investigation against the defendant, obligatory shall be appointed duplicate defender, in case he appears without an authorized lawyer, no matter of the fact he has such. All the questions for eventual presumed procedure violations in the pre-court stage shall be considered finally in the efficient session of the first instance court. Depending on the kind of the concrete case, in the session take part the prosecutor, the defendant and its defender, the victim or his inheritors, as well as the representatives of the suffered legal entity. After the court act from the efficient session enters into force and the day is set for trying the essence of the case, it could not be returned for additional investigation.
The institute for immediate procedure has been deleted but the application of the quick procedure has been extended and it shall be applied upon the decision of the prosecutor for crimes, for which the law prohibits not more than 3 years prison, in case there isn’t death or caused of heavy personal injury. At the quick procedure it is not stipulated an efficient session but the possibility the case to be returned to the prosecutor in case of essential procedure violation that could violate the rights of the defendant, is kept. The court is not allowed to return the case over again to the prosecutor on one and the same ground.
It has been revised the existing figure of “eternal accused” and has been widen the referring to the “eternal defendant”. As the accused has the right to require after expiring the definite term the case to be entered in court, as the defendant shall be able to require its fastening at the court stage. Except for the defendant and his defender, fastening the procedure could also be required by the sufferer and the suffered legal entity. The court shall make the decision whether the investigation has been slowed by objective criteria: complicity of the case, the kind and capacity of the procedure activities, the effectiveness at the gathering proofs. The court shall determine appropriate term for finishing the activities according to the criteria’s of the European Court of Human Rights for examining the case is a reasonable term. At the court stage the requirement for fastening could be made by all parties in the case if 2 years at first instance has been passed and one year – at second instance.
Examination of an expert could be made from distance – by telephone call of a videoconference call. At the pronouncement of the sentence the first instance court shall pronounce when the grounds shall be ready. It has been entered some measurements for defending of the sufferer according to the minimal standards for protection of the victims of crimes, regulated with Directive 2012/29/EC. The examination of such witnesses with specific needs of protection shall be made without any contact with the defendant – in special promises, with videoconference or telephone connection. The evidences of vulnerable persons examined at the pre-court stage, could be added in lack of presence. As a measurement against the escape from justice has been entered the immediate execution as of the second instance, as the cassation court acts. The cassation instance shall send immediately copy of its act to the prosecutor for execution at effective imprisonment.

State Gazette, issue 65/ August 11th, 2017
The amendments of the Judicial Authorities Act aim narrowing the dependency of the magistrates from external factors. A prohibition has been entered for judges, prosecutors or investigators to take part in any kind of commercial activity, including personally, by a false person and/or evident and/or hidden representor, to receive remuneration for accomplishing activities under a contract or another legal relation with a state, municipal or public organization, legal entity, cooperation, non-profit legal entity or sole trader and accomplishing liberal professional or another paid professional activity. Judge, prosecutor or investigator, while performing his duties, could also receive remuneration for performing scientifically or lecturer activities or for his authors rights; from participation in European or international programs and projects; as well as for participation of making projects for legal acts that has been issued by the National Assembly, the Supreme Court Council or by bodies of the execution power.
The judges, prosecutors and investigators could form and take part in organizations, which protect their professional interests but these organizations could not participate in federations or confederations of syndical organizations of employees. The members of the professional magistrates organizations could not participate in professional associations of other mans of law. The professional magistrates organizations shall have the capacity of legal entities after their entering according to the order for entering of the non-profit legal entities. Founders and members may be only judges, prosecutors and investigators.
To the Supreme Court Council shall be found Partners Council, which shall consist of three elected members of the personnel body, determined by the plenum, by representatives of each magistrates organizations, with membership content not smaller than 5 over one hundred from the respective number of the judges, the prosecutors and the investigators, as well as from representatives of the magistrates, that do not take part in such organizations. The Council accomplished dialogue at all kind of questions, referring to the professional interests of the judges, the prosecutors and the investigators. The organization and the activity of the Partners Council shall be determined with a Regulation of the plenum of the Supreme Court Council.
Prosecuting as a defendant of a judge, prosecutor or an investigator for accomplished premeditated crime of common kind, he shall be dismissed also in cases when the act is not in the sphere of his official rights. In a thirty – day period as of the entering into force of the changes, all judges, prosecutors and investigators, members of the Supreme Court Council, the major inspector and the members of the court inspectorates have to declare before the Supreme Court Council all their activities and memberships in organizations, including secret and/or unformal organizations and societies, non-profit legal entities and civil companies and unions.