"INAR" has required its administrators to conclude professional liability insurance policies

The shareholders of "INAR" Braşov last week revoked three of its members of the Board of Directors, whereas two other members had resigned earlier from their positions. However, on the same meeting, the shareholders reelected the five members of the board, and required each of them to conclude individual professional liability insurance policies of 5,000 Euros.

Braşov-based "INAR", the only institute for vehicle research in Romania, last year posted a loss of 392,971 lei, after posting satisfactory earnings in the previous years. The company"s revenues dropped by half last year, from 1.255 million lei to 605,581 lei, whereas expenses dropped by just one third, from 1.213 million lei to 992,819 lei.

According to the report sent to the Bucharest Stock Exchange, in 2009, the activity of the company was affected by several factors, such as the drastic drop in the volume of orders received from the company"s traditional state owned partners, due to their disappearance or decrease in turnover, the significant reduction of the budget allocated for the National Research, Development and Innovation Plan, the low interest of companies in co-financing research and development works, the successive increases in the price of utilities as well as the cost of maintenance of its old equipment.

The weight of research activities in the total turnover of the company decreased significantly last year, whereas the weight of revenues from license fees and rents increased significantly. The company is controlled by the Romanian state, via the Authority for State Assets Recovery (AVAS), which owns 57.10%, SIF Transilvania - 38.99%, whereas the remaining stock is held by current and former employees of the company.

Ovidiu VRÂNCEANU, Braşov (translated by cosmin ghidoveanu)