Opinion of the European Central Bank of 19 November 1999 at the request of the Bank of Greece on a draft legislative proposal amending Article 8, paragraph 5, and Articles 9 and 13 of the Statute of the Bank of Greece (CON/99/18)
Date: 1999-11-19
Institutions: European Central Bank
Subjects: Greece, capital increase, central bank, national law, shareholding

OPINION OF THE EUROPEAN CENTRAL BANK

of 19 November 1999

at the request of the Bank of Greece on a draft legislative proposal amending 

Article 8, paragraph 5, and Articles 9 and 13 of the Statute of the Bank of Greece

[CON/99/18]

1.

On 9 November 1999 the European Central Bank (ECB) received a request from the Bank of

Greece for an ECB Opinion on a draft legislative proposal amending Article 8, paragraph 5, and

Articles 9 and 13 of the Statute of the Bank of Greece.

2.

The  ECB’s  competence  to  deliver  an  opinion  is  based  on  Article 2  of  the  Council  Decision

(98/415/EC) of 29 June 1998 on the consultation of the ECB by national authorities regarding

draft  legislative  provisions,  as  the  draft  legislative  proposal  contains  provisions  concerning  a

national central bank. In accordance with Article 17.5, first sentence, of the Rules of Procedure

of the European Central Bank, this ECB Opinion has been adopted by the Governing Council of

the ECB. 

3. 

Article 8, paragraph 5, of the draft legislative proposal stipulates that the State may increase its

participation  in  the  share  capital  of  the  Bank  of  Greece  from  10%  to  35%.  There  are  no

objections to such a provision from the ECB’s point of view.

4. 

Article 9 of the draft legislative proposal empowers the General Council of the Bank of Greece

to decide upon the stock split and determine the nominal value of the new shares. As the Bank

of  Greece  is  a  public  company  limited  by  shares,  it  is  subject  to  the  provisions  of  law

2190/1920,  as  amended,  with  regard  to  the  division  of  competence  concerning  matters  of

company  law.  According  to  the  provisions  of  the  above-mentioned  law  on  public  companies

limited by shares, the shareholders’ meeting  is  competent  to  decide  upon  the  stock  split.  The

draft legislative proposal empowers the General Council of the Bank of Greece to decide upon

such  split.  Given  the  need  for  immediate  action  in  the  event  of  rapid  financial  changes,  it  is

understood  that  the  delegation  of  the  power  to  decide  upon  the  split  to  the  more  flexible

General  Council  is  a  matter  of  convenience  and  practicality.  Furthermore,  there  are  no

objections to this provision from the ECB’s perspective.

5. 

Article  13  of  the  draft  legislative  proposal  empowers  the  General  Council  of  the  Bank  of

Greece to decide upon the minimum number of shares that entitles shareholders to participate in

the meeting at which the split is decided. The ECB has no objection to this provision.

4.

The  ECB  confirms  that  it  has  no  objection  to  this  ECB  Opinion  being  made  public  by  the

competent national authorities at their discretion.

Done at Frankfurt am Main on 19 November 1999.

The President of the ECB

[signed]

Willem F. Duisenberg