The law that allowed PFA entities to become commercial companies did not pass the Constitutional Court.

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  • The law that allowed PFA entities to become commercial companies did not pass the Constitutional Court.

The Constitutional Court declared unconstitutional the bill that allowed authorized natural persons (PFA), individual enterprises, and family enterprises to transform into limited liability companies (SRL).

În cadrul controlului de constituţionalitate a priori, cu unanimitate de voturi, CCR a admis joi o obiecţie de neconstituţionalitate ridicată de Înalta Curte de Casaţie şi Justiţie şi a constatat că este neconstituţională, în ansamblul său, Legea pentru completarea Ordonanţei de urgenţă a Guvernului nr. 44/2008 privind desfăşurarea activităţilor economice de către persoanele fizice autorizate, întreprinderile individuale şi întreprinderile familiale.

Curtea Constituțională a declarat neconstituțional proiectul de lege care permitea persoanelor fizice autorizate (PFA), întreprinderilor individuale și întreprinderilor familiale să se transforme în societăți cu răspundere limitată (SRL).

The Constitutional Court declared unconstitutional the bill that allowed authorized natural persons (PFA), individual enterprises, and family enterprises to transform into limited liability companies (SRL).

Essentially, the Constitutional Court noted that the legislator’s intention to establish an option for authorized natural persons, individual enterprises, and family enterprises to change their organizational form into a company under one of the forms provided by Law No. 31/1990 is not accompanied by the concrete regulation of a legal procedure that would allow the effective implementation of this change, considering the different legal regime of companies regulated by Law No. 31/1990.

The Court found that the mere exercise of an option right recognized by law for entities without legal personality, even accompanied by the submission of documents, is not sufficient and cannot automatically and fully lead to the assimilation of the legal regime of economic entities without legal personality, regulated by Government Emergency Ordinance No. 44/2008, with the legal regime of companies with legal personality, regulated by Law No. 31/1990, republished, with subsequent amendments and completions, nor does it determine the corresponding application of the procedure provided by Law No. 31/1990 in the case of changing the form of companies.

The Court also noted that, in the absence of explicitly and unequivocally establishing the procedure for transformation, the substantive and formal conditions required to convert an entity without legal personality into a company, the contested law creates, in certain aspects, the premises for non-uniform application of the established legal norms and, in some cases, leads to the impossibility of effectively applying the contested law, caused by its defective, imprecise, and incomplete drafting, which contravenes the constitutional provisions regarding the principle of legality, specifically the component related to the quality of the law.

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