Category: Corporate governance

11 May, 2020
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Government passes Decree establishing a Guarantee Scheme – What can Serbian business owners expect?

On April 10, 2020, the Serbian government announced economic policy measures to reduce the impact of the pandemic on the Serbian economy. These measures include financial support to businesses, inter alia, through loans on favorable terms and financing of minimum wages. The list of measures announced on April 10 is not conclusive. Namely, another regulation is the Decree establishing a guarantee scheme as an economic support measure to mitigate the consequences of the COVID-19 disease caused by virus SARS-CoV-2 (“Decree“). According to the Minister of Finance, this Decree is the cornerstone of the entire economic program of the Serbian Government […]

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11 May, 2020
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The new Government Decree postponed the most important deadlines for business entities

The legal framework of economic support measures established on April 10, 2020 through a series of decrees, was followed less than a week later by another decree.  Namely, the Government of the Republic of Serbia adopted the Decree moving the deadlines for holding the regular session of the general meeting and submitting annual and consolidated financial statements for companies, cooperatives, other legal entities and entrepreneurs, as well as deadlines for submitting corporate income tax returns and self-employment income tax returns, validity of authorized auditor licenses and real estate appraiser licenses which expire during the state of emergency declared because of […]

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08 May, 2020
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National Assembly bids farewell to state of emergency and (some) emergency measures

Since the introduction of the state of emergency in Serbia on March 15, 2020, the Government issued a number of decrees restricting certain human rights and freedoms, such as freedom of assembly, and providing novel regulatory framework for functioning of the public sector, economy and judiciary during the state of emergency. While the primary goal of those measures was to protect public health, they also had the broader economic protection of citizens in mind, be it employees, unemployed persons or senior citizens.   However, the favorable epidemiological situation in Serbia enabled – and the needs of the economy necessitated – […]

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06 Apr, 2020
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Covid-19 pandemic puts Global Labor Regulations to test – Rights of Employees and Employers in Bosnia And Herzegovina

The COVID-19 pandemic has put labor law to the situational sensitivity test. How should the burden of emerging circumstances between employers and employees be shouldered considering that the income of both are at serious risk? Sources of labor law, to some extent, already contain answers to the flood of questions that have arisen. The trick is how to apply them adequately to each circumstance so that they protect the most vulnerable and that the burden of the economic effects of the pandemic, if possible, is equitably distributed. Here we analyze the relevant labor legislation and decisions issued by the authorities […]

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31 Mar, 2020
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The important link between the State and employers in the struggle against the Covid-19 pandemic

The outbreak of the COVID-19 pandemic pushed authorities to take measures to protect public health.  These measures have a growing impact on business activities in all countries affected by the coronavirus.  Furthermore, these measures caused employers to take multiple steps in order to maintain their business continuity. Because of these extraordinary circumstances, massive layoffs and other negative consequences on employees are surely to be expected. Despite all the efforts of the countries to boost their economies, it will be the employees who will be the most affected by the current situation. Thus, employees will suffer both from the pandemic’s potential […]

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31 Mar, 2020
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COVID-19 and temporary closures of small businesses – what happens to cash registers?

The outbreak of COVID-19 has undoubtedly affected all aspects of the Serbian economy.  While many company executives have come forth with pessimistic forecasts regarding the overall economic and business stability, most employees are in fear of losing their jobs and, thus, their livelihoods. But how is the escalating situation affecting small businesses, such as entrepreneurs?   Entrepreneurs bear the brunt Measures implemented by the authorities to thwart a massive outbreak of COVID-19 in Serbia included a ban on public gatherings, a curfew, restaurant and coffee shop closures, as well as closures of recreational and entertainment amenities.  The primary aim of […]

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27 Mar, 2020
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Effects of COVID-19 on business owners – are they entitled to rent reduction?

With the state of emergency measures hitting businesses throughout Serbia, business owners are scrambling for ways to cut expenses as much as possible. Seeing that many businesses, especially SMEs, lease their commercial premises, the obvious question is whether business owners must pay full rent while closed or operating at severely reduced capacity? The answer is by no means an easy or straightforward one.   What does the law say? The Contracts and Torts Act (“CTA”) regulates the landlord-tenant relationship by and large. Under the CTA, tenants must use the leased premises with the care of a prudent businessperson and only […]

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25 Mar, 2020
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Tax Administration of Montenegro postpones deadlines

Montenegro is the last European country to be hit by the COVID-19 pandemic.  While no state of emergency has declared, Montenegrin authorities have unveiled a series of measures to alleviate economic hardship and prevent the country from slipping into recession.  In light of the current situation, the Montenegrin Tax Administration is postponing filing deadlines for tax returns and financial statements.   Breathing space In ordinary circumstances, the statutory filing deadline for financial statements and income tax returns is March 31, 2020. The latest decision by the Montenegrin Tax Administration moves the deadline back by 15 days to April 15, 2020. […]

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25 Mar, 2020
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Restriction of movement in Bosnia and Herzegovina – two Entities with a common foe

Many states – if not all – have deemed it necessary to restrict citizens’ rights during the COVID-19 pandemic just to stay afloat. Typically, states opt to limit freedom of movement by placing certain categories of people under what effectively amounts to house arrest and imposing mandatory curfews on the rest, irrespective of age. In that regard, Bosnia and Herzegovina (“BH”) is no exception. While the Council of Ministers of BH declared a “state of natural or other disaster” in recognition of the danger posed by COVID-19, measures that would hopefully slow the advance of the virus were announced by […]

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24 Mar, 2020
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From the comfort of your home to the business relationship with the bank

Due to the global COVID-19 pandemic, a state of emergency was declared in Serbia on March 15, 2020. Restrictions are in place on the movement of people in order to curb the spread of the virus and flatten the curve. Given that COVID-19 spreads from person-to-person, the only measure of protection is to avoid social contact. As of March 16, teaching at schools and universities has been suspended and kindergartens closed. That said, some institutions remain open, such as courts, municipal authorities, notaries public, banks and other financial institutions all with the aim of keeping the cogs of business turning. […]

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24 Mar, 2020
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Insolvency, enforcement and notarizing – the COVID-19 implications

Since the escalation of the COVID-19 pandemic and the declaration of the state of emergency in Serbia, many people have been left wondering what this situation means for their everyday life. Should they expect enforcement proceedings to be initiated for that unpaid utility bill? Will parties be able to conclude and solemnize the sale and purchase agreement of real estate? And what about bankruptcy proceedings initiated over a company – will they be able to go on unhindered? These and similar questions are very important for citizens as well as businesses. Luckily, the Ministry of Justice (“MoJ”) anticipated these questions […]

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20 Mar, 2020
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(e)Registration of LLC in a state of emergency

Due to the global COVID-19 pandemic, a state of emergency was declared in Serbia on 15th March 2020.  This decision had the effect of restricting movement of people in order to prevent further spread of the virus and reduce the number of those infected. As of 17th March, Serbia imposed a curfew which means further restrictions concerning day-to-day movement. All service counters in public institutions were ordered to be closed, except for those whose closure would endanger continuous functioning of the state for the duration of the state of emergency. This means that the counters within the Serbian Business Registers […]

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COVID-19: Compare multiple jurisdictions across the globe with TerraLex

We are pleased to share the TerraLex Coronavirus Business Response Resource Center with you. It is a compilation of business solution resources from TerraLex members, some of the finest and best ranked firms, from around the globe relevant to contracts, labor, business continuity, etc. TerraLex and its members understand that in the rapidly evolving challenges posed by coronavirus and the prospect of recessionary times ahead, businesses are struggling with a variety of issues and looking to their trusted advisors for help. This Resource Center functions just like our cross-border guides. Visitors can select specific topics of interest and specific jurisdictions […]

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14 Mar, 2020
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Multimember corporate body sessions during the COVID-19 pandemic

Given COVID-19’s pandemic status, the general recommendation from health and state authorities is to avoid direct face to face meetings and reduce our number of social contacts as much as possible. However, sessions of multimember corporate bodies cannot stop, and the decision-making processes should continue. In these unprecedented times all multimember corporate bodies of Serbian companies should look at the alternatives available under the Companies Act, which allow sessions to be held via modern communication equipment and devices. This document serves as a quick refresher as to how Serbian companies should go about holding sessions remotely. Article 212 of the […]

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