The Romanian National Securities Commission (CNVM) is forcing the Board of Directors of the Investment Management Company "Pioneer Asset Management" to summon the shareholders to decide on whether the company will be dissolved, or, as the case may be, its share capital will be reduced or increased, since the company"s net assets decreased to less than 50% of the subscribed share capital, an Ordinance of the Romanian National Securities Commission states. "Pioneer Asset Management" SAI has a share capital of 7.55 million lei, according to information from the company"s website.

Contacted by BURSA, Florin Dolea, the executive director of "Pioneer Asset Management", said that the company posted losses of about 4 million lei in the last three-four years, in particular, due to the expenses incurred in developing the network for the distribution of its investment funds. Mr. Dolea is optimistic that the shareholders will not decide to dissolve the company, since they also have the legal recourse of increasing the company"s share capital; or reducing it by an amount at least equal to the losses that could not be covered using the company"s reserves. Florin Dolea said: "Over the last 3-4 years we accumulated losses of about 4 million lei and the company"s net assets fell to less than half of the subscribed share capital. Essentially, the losses resulted from the investments we made in developing the distribution network, expenses which are par for the course. I think that the CNVM was a bit too eager in issuing this Ordinance, it should have waited until we had approved the financial statements for 2010. Thanks to the positive evolution of the company"s activities, I am convinced that the General Extraordinary Shareholder Meeting will not decide to dissolve the company, quite the contrary, it will vote in favor of restoring the ratio between the net assets and the subsc