The arrival of the euro as the official currency in the Republic of Croatia brings numerous changes and adjustments to the legislative framework. Because of that, the Law of the euro introduction as the official currency in the Republic of Croatia was published.

In a series of articles about the euro introduction, Confida deals with informing and educating citizens about the changes. With the publication of the previous article, we referred to changes regarding the issuance of documents, certificates and data exchange by public authorities about the euro arrival.  Today’s article presents general rules for recalculating the share capital on the euro introduction day in the Republic of Croatia. The rules are stated in Article 65 of the mentioned Law.

Recalculation and presentation of market values ​​of shares

For the market value of shares that are included or traded in kuna, the market operator/manager of the multilateral trading platform on the day of the euro introduction recalculates and reports the amounts in euros. The amount is rounded to the nearest cent using a fixed conversion rate and following the rules for conversion and rounding from the Law on the euro introduction.

Recalculation of the share capital amount

Joint-stock companies must recalculate the existing amount of share capital and its parts attributable to shares. Recalculation, as in the previous case, is carried out by applying a fixed conversion rate from kuna to euro with rounding to the nearest cent by the rules for recalculation and rounding from the Act on the euro introduction.

Also, limited liability companies are required to recalculate the existing amount of share capital and its parts attributable to business shares, by applying a fixed conversion rate from kuna to euro, with rounding to the nearest cent, by the rules. The obtained amounts must be reconciled with the requirements and in the manner regulated by the establishment of commercial companies.

Registration in the court register

The amount of the limited partner’s stake entered in the court register in kuna is recalculated on the day of the euro introduction from the kuna to the euro, again by rounding to the nearest cent with the application of a fixed exchange rate and rules for recalculation and rounding. The recalculated amount will be entered in the court register ex officio by the registry court.

Within one year from the date of the euro introduction, joint-stock companies must submit a request for registration of the change to the registry court. The request can be submitted at the earliest on the day of the euro introduction.

Unlike joint-stock companies, limited liability companies are required to submit a request to the registration court for registration of the change within a maximum of three years from the date of euro introduction. The request can be submitted at the earliest on the day of the euro introduction.

The most important thing to remember is that all financial obligations based on shares, business shares that are due on the day of the euro introduction or later, and were expressed in kunas, are settled in euros by the rules for conversion and rounding from the Act on the euro introduction.

Registration of the before-mentioned changes for joint-stock companies and limited liability companies, which are carried out in the court register to comply with the provisions of the Act on the euro introduction and the law regulating the establishment of commercial companies, is carried out under urgent procedure.