Collection of receivables from debtors in the blockade

Under conditions of the global financial crisis increases the risk of debt uncollectability. The risk of this type primarily depends on the individual claims, payment terms, economic and political conditions in the country, as well as the solvency and creditworthiness of the debtor.

The occurence of the debtor’s inability to fulfill its financial obligations due to blockage of business accounts is one of the biggest risks, whose implementation may result in a debtor’s bankruptcy, but in some cases may represent a cause of the creditor’s bankruptcy.

Answers on some questions, concerning with the possibility of the collection of receivables from a debtor who has in the blockade you can find in this article.

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Legal consequences of a blocked accounts are regulated by the Law on performing payment of legal persons, entrepreneurs and natural persons who do not perform activities. Continue reading Collection of receivables from debtors in the blockade

Reduction of share capital of the limited liability company

A limited liability company’s share capital may be reduced by the resolution of the company’s general meeting, but not below the minimum share capital, which amounts to at least RSD 100, unless a special law provides a higher amount of the share capital for companies dealing in certain business activities.

Decision to reduce the share capital of a limited liability company below the minimum share capital may be passed only under a condition that an increase in share capital is simultaneously carried out, so that, as a result of such reduction and increase the company’s share capital becomes at least equal to the minimum amount of share capital, which amounts to at least RSD 100, unless a special law provides a higher amount of the share capital for companies dealing in certain business activities.

If the limited liability company fails to simultaneously pass a decision on increase of share capital and fails to carry out such increase, the decision on reduction of share capital is null and void. Continue reading Reduction of share capital of the limited liability company