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Effect of CCR decision on corporate governance - end of politicising state institutions

The decision of the Constitutional Court referring to Emergency Government Decision 109/2011 on corporate governance has as immediate effect putting an end to Social Democratic Party (PSD)  – Alliance of Liberals and Democrats (ALDE) ruling coallition actions of politicising state companies, said liberal Ioan Cupsa on Tuesday.

The non constitutionality objection was formulated by 64 liberal deputies.

“The objection of non constitutionality for the order on corporate  governance was admitted. Practically, today we succeeded, by this decision, by the decision of Court, to put an end to PSD-ALDE actions to politicise institutions, companies, state companies, by appointing party sinecurists,”Cupsa said in Parliament.

He said that the immediate practical effect is that no appointments will be made based on this amendment to corporate governance. “Therefore we used available means, we succeeded  to stop them again. Of course, nothing is perfect,” Cupsa added.

The law amending Decision 109/2011 on corporate governance was adopted by infringing the bi-chamber principle and has provisions against the constitutional regime of government decisions, the Constitutional Court ruled on Tuesday.

Constitutional Court of Romania also decided on Tuesday that some provisions of the amendments brought to the Law No.317/2004 regarding the organisation and functioning of the Superior Council of Magistracy (CSM) are unconstitutional.

"We have ruled on the third justice law - the Law No.317/2004 regarding the organisation of the CSM. The solution is to unanimously pass some texts which are aimed at various points of the organisation law. There are about five which refer to several texts. I will give you some examples: it's about a text that keeps repeating itself. However, according to the Law on Legislative Technique, it's not common and it is actually forbidden that several texts be listed in parallel in order to create confusions in the enforcement process," President of the CCR Valter Dorneanu stated.

He stated that another text which was found to be unconstitutional refers to the election of the President and Vice President of the CSM. 

"Basically, the current text overlooked, omitted the constitutional text saying they were elected to their office by the CSM plenum. However, the text that we criticised stipulated that the President of the Judges Section is basically appointed [as President of the CSM], as well as the Vice President, from among prosecutors. I repeat, the text contradicted the constitutional provisions. Another text that was declared unconstitutional, I repeat, also unanimously, it's about that regulation stipulating that CSM members' statements, whether they were involved or have been involved or are involved in political police matters, are censured and controlled by the Parliamentary Committee overseeing the Romanian Intelligence Service (SRI)," the CCR President mentioned.   

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