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Estonian CSD Registered 4039 Joint Stock Companies In 2002

Date 03/01/2003

In year 2002 the Estonian CSD (ECSD) registered 4,039 joint stock companies in the Estonian central securities register. As at the end of the year, a total of 4,850 companies had applied for registration on the register, i.e. more than 76% of all joint stock companies operating in Estonia.

Most of the applications were submitted in Q4, when ECSD received up to 2,000 applications. This was nearly the same amount as the combined number of applications submitted during the first three quarters of the year.

Kaidi Oone, the Managing Director of ECSD, noted that the rush at the end of the year was expected, since the previous version of the law had stipulated January 1, 2003 as the deadline for all joint stock companies to be registered in the central securities register. "We were prepared for that. Today we can confirm that there were not and will not be in the future any unnecessary delays in processing of registration applications," she said.

Ms. Oone also said that Parliament's decision to postpone the registration deadline, made less than one month before the initial deadline, put those entrepreneurs who had applied for registration timely in an unfavorable position. "The entrepreneurs who applied for registration only by reason that the law required so must now start paying the register fees earlier than those who postponed this obligation to the last minute," explained Ms. Oone. "However, this cannot be considered wasted money, since the central securities register provides the companies with substantially higher legal certainty. Moreover, ECSD takes care of several corporate actions related procedures that thus far were the obligation of the company's management board."

According to the recently enforced amendments to the Estonian Central Register of Securities Act, all joint stock companies operating in Estonia must be registered in the central securities register not later than by July 1, 2003.

Although the mandatory registration applies only to joint stock companies, also the registration of private limited company (osaĆ¼hing) boosted last year. During the year ECSD registered 162 private limited companies. As at the end of the year 2002 altogether 186 private limited companies had applied for registration.

"The growing interest of private limited companies towards registration in the central securities register indicates that the entrepreneurs see it as an important warranty for transactions with the company's securities," Oone noted.

According to Ms. Oone, the other important events for ECSD in year 2002 were the launch of the reform and development of client service. "Our major goal was to make the information about the registration as easily available as possible, and to make the registration process to entrepreneurs as simple as possible," she said. "We trained the register consultants, we launched 24 h hotline, and updated our Internet homepage. In co-operation with the banks, we started to accept registration applications via bank branches. Recently we also launched the possibility to submit the application digitally using the ID card."

In year 2003 the ECSD intends to continue to improve the quality of client service, focusing on development of services to companies registered in the central securities register.