Contract on control and management

According to provisions of the Companies Act a contract on control and management shall be concluded in the case of forming an contractual group of companies. A contractual group of companies consists of a controlling company and one or more controlled companies that have entered into a contract on control and management.

A contract on control and management is regulated by the provisions of Articles from 554 to 566 of the Companies Act.

Concept, Conclusion, Amendments and Termination

Concept

A contract on control and management is a contract whereby a company grants the management and conduct of operations to another company.

If the companies making up a group based on equality in terms of Article 551 paragraph 2 item 3) of the Companies Act enter into a contract introducing uniform manner of management, such a contract is not be deemed to be a contract on control and management in terms of the Companies Act. Continue reading Contract on control and management

Legal remedies in enforcement proceedings

Legal remedies in enforcement proceedings are the appeal and objection.

The appeal is used to contest the writ of the first instance court or the writ of the public enforcement officer, unless it is stipulated in the Law on enforcement and security interest the appeal is not permitted or that such writ is to be contested by objection.

The objection is filed against the writ on the motion for enforcement based on credible document, against other writs of the first instance court or public enforcement officer defined by the Law on enforcement and security interest, and in the form of the third party objection.

Only in case of objection of the third party an objection is permitted against the writ issued on the objection to the writ, and the appeal only against the writ issued on the objection to the writ of execution based on a credible document.

A conclusion is not subject to objection or appeal. The objection or appeal filed against a conclusion is dismissed by a writ or conclusion which completes the enforcement proceedings. Continue reading Legal remedies in enforcement proceedings

Usage of seal in dealing of the business entities

By the provisions of the Act on Amendments and Supplements to the Companies Act (’’Official Herald of RS ‘’, No. 44/2018) were realized the improvement of individual solutions from the valid Companies Act (’’Official Herald of RS ‘’, Nos. 36/2011, 99/2011, 83/2014 – other law and 5/2015) and further harmonization with the EU regulations.

The Act on Amendments and Supplements to the Companies Act (’’Official Herald of RS ‘’, No. 44/2018) entered into force on 09 June 2018, but its implementation began on 01 October 2018, except for the provisions on cross-border mergers and acquisitions of companies, on Societas Europaea and the European economic interest grouping, which will be applicable from 01 January 2022.

Usage of Seal

The obligation to use seal have been abolished to companies for a long time. However, in accordance with certain regulations, the usage of seal still existed as for it was prescribed, so by the amendments and supplements to the Companies Act has been stipulated that an obligation to use the seal in business letters and other documents of the company can not be established to company by specific regulation. Continue reading Usage of seal in dealing of the business entities