GREECE Law and Practice Contributed by: Fotodotis Malamas, Bernitsas Law
transfer of wealth to them by way of a merger without any tax implications. 4.3 Transfer of Partial Interest When a partial interest in an entity is transferred dur - ing lifetime or upon death, the fair market value of the interest, for transfer tax purposes, is not adjusted to reflect a discount for lack of marketability and control. For tax purposes, the value of a partial interest is its fair market value at the time of the transfer. Increasing financial pressure on family members and dependants, as well as a greater willingness to hold executors and trustees to account for their actions, can mean a higher than usual level of complexity in disputes of this nature, with disputes relating to fam - ily and inherited wealth becoming increasingly com - mon. Complex family structures involving second or even third families, cross-border estates that span two or more jurisdictions, and generally more valuable estates all tend to give rise to circumstances in which there is more scope for probate and will disputes, or to contentious probate. 5.2 Mechanism for Compensation 5. Wealth Disputes 5.1 Trends Driving Disputes The main mechanism in Greece for compensating aggrieved parties in wealth disputes is action before the civil courts. The rules that govern civil procedures in Greece are regulated by the Code of Civil Proce - dure, which provides for pre-action interim remedies, or safety measures, over and above the ordinary pro - cedures. As an alternative, disputes may be resolved through arbitration or mediation, although mediation has only recently been introduced into the Greek legal system and only a small number of disputes are resolved through it. In principle, damages are pecuniary, although the court may take into consideration any special cir - cumstances and order the reinstatement of the former situation, or status quo ante, in lieu of monetary dam - ages if such method of compensation is not contrary to the interests of the creditor. Damages comprise a decrease in the existing patrimonium of the plaintiff,
as well as loss of profit. Monetary compensation may be due in cases where loss is not pecuniary.
6. Roles and Responsibilities of Fiduciaries 6.1 Prevalence of Corporate Fiduciaries In principle, Greek legislation does not provide for the use of corporate fiduciaries within the meaning attributed to this term in common law countries, other than in the issuance of bonds. The Bond Law (Law 3156/2003) introduced the possibility for a group of bondholders to be represented by a bondholder agent, who takes security on their behalf. The duties of the bondholder agent are performed by a trustee, which may be a credit institution or an affiliated com - pany that legally provides services in the EEA. Unless otherwise provided for in terms of a covered bonds issue, trustees are liable to bondholders for wilful mis- conduct and gross negligence. Sociétés Anonymes A newly established form of corporation bears some of the characteristics of a corporate fiduciary. The Non-Performing Loans (NPLs) Law provides for companies in the form of sociétés anonymes , which may undertake the management of such loans with a licence from the Bank of Greece and may be del - egated the management of claims arising from loans and/or credit agreements that have not been perform - ing for a period exceeding 90 days. The management of claims arising from loans and/or credits that have been performing may only be delegated together with claims against non-performing debtors. The first law on NPLs, Law 4354/2015, has been recently abolished and replaced by Law 5072/2023. The new law trans - posed into domestic legislation Directive 2021/2167/ EU on credit servicers and credit purchasers and amending Directives 2008/48/EC and 2014/17/EU. Acting as non-beneficiary parties, management companies are entitled to file any legal remedy and to undertake any other judicial action to recover the claims under management, as well as to initiate, appear or participate in any pre-insolvency resolution, insolvency, debt settlement and special administration procedures. For the purposes of this law, manage -
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