On 19 July 2024, Law 5122/2024 was published (Government Gazette A’ 108/19.07.2024) transposing Directive (EU) 2019/1151 of the European Parliament and of the Council into Law 4919/2022 (which, regulates, among other, the use of digital tools and processes in company law). For the first time, a special Register of Disqualified Directors is set up and maintained by the General Commercial Registry listing the individuals/directors who must be excluded from the management of corporate affairs of local entities and branches.
More specifically, individuals that have been finally convicted for certain crimes (related to bankruptcy procedure offences, market abuse, violation of company law, smuggling, money laundering and terrorism financing and other specifically listed criminal offences) in Greece or in another EU member state cannot be appointed as directors, liquidators and/or legal representatives of local entities and branches, while if appointed (a) they are disqualified from such office for 5 to 15 years, based on the gravity of the offence, and (b) monetary fines ranging from Euro 20,000 to 500,000 are imposed on the disqualified directors themselves and Euro 50,000 to 1,000,000 on the local entities appointing them.
The purpose of the new provisions is to protect persons interacting with companies or branches in good will against any fraudulent or abusive behaviour through the use of information exchanged between the EU member states through various registers and especially the "e-justice" platform. Access to the Register of Disqualified Directors can be granted to members of the public too, provided they prove their legal interest and file a relevant written application.
