Abstract

The new Act on Bonds becomes effective as of 1 July 2015. Its provisions introduce vital changes as regards permissibility of modifications to the obligational relationship between issuer and bondholders, inter alia by regulating the institution of a meetings of bondholders. The legislative regulation of a general meeting of bondholders is aimed at minimizing legal uncertainty and the practical problems that arise therefrom as concerns changes in the terms of a bond issue, which may now be encountered in the trading practice on the debt securities market. The provisions of the Act lay down the rules for convening a meeting of bondholders, indicate the authorized attendees and the catalogue of issues which may be subject to resolutions adopted by a bondholder meeting and the procedure for adopting resolutions. The introduction of a general meetings as a body representing all of the holders of bonds of a given series, as a response to practical needs, will allow entrepreneurs to change the contents of the legal relationship under bonds ex post, and unify the rules for changing the terms of bonds issue, thus contributing to elimination of doubts as to their permissibility and manner of modification.