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Parliament scraps golden shares

The parliament voted on Monday to revoke the 'golden share' law which gave the state certain veto powers in formerly state-controlled companies, such as MOL Nyrt.

Hungary is forced to scrap golden shares in order to meet EU directives. Existing golden shares will have to be converted into ordinary shares, parliament said. Companies affected by the decision include oil company MOL Nyrt, retail bank OTP Nyrt, telco Magyar Telekom Nyrt and several power companies. According to the new regulation, the state can no longer hold a golden share in any of these companies, but the shareholders can agree to grant voting preference shares to the state. The state will also be able to keep its posts in the boards of directors and supervisory boards of the power companies, though without keeping voting rights. (Napi Gazdaság, Magyar Hirlap)