Company Law to be changed

In early April, the Ministry of Economy has formed a task force that will prepare changes to the Company Law. The changes are probably going to be forwarded to the Parliament for a debate late this year.

One of the most important changes concerns lifting the ban on merging Serbian companies with the companies from abroad, effortless relocation of company’s headquarters abroad, and implementation of the new company forms like a European shareholding company or a European economic interest grouping (EEIG).

The law will be changed in part to accommodate the requirements of chapter 6 of the EU Acquis, and to eliminate the problems with implementation in practice.

“The plan is to incorporate into the Law something called trans-national merger. This means that a Serbian company will be allowed to merge with a European company to form a new company whether in Serbia or in a European country”, says Dusan Vuckovic from the Ministry of Economy. “The Law will facilitate relocation of a company’s headquarters from Serbia to an EU country without big administrative obstacles”.

In terms of eliminating the burning problems that were created over the past few years as a result of the implementation of the existing Company Law, the Ministry of Economy says that they are looking for ways to provide better legal protection for small shareholders and to legally regulate issues regarding compulsory company liquidation.

“We are going to do everything in our power to provide a better legal protection for small shareholders during the process of compulsory sale of company shares. What has happened so far in practice is that whenever someone sues in relation to this process, the process is then stopped and resumed months after, and afterwards nobody knows whether the value of the shares in question has remained the same or not. That should be better regulated”, Vuckovic adds.

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(Vecernje Novosti, 27.04.2017)



This post is also available in: Italiano

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