Refuting debtor’s legal acts (actio Pauliana)

The rule is that the obligatory relations between the debtor and third parties for the creditor are res inter alios acta. An exception to this rule is the possibility for a creditor to, under certain conditions, refute legal actions taken by his debtor with a third party.

The creditor refutes such actions by filing a lawsuit (actio Pauliana) against a third party i.e. by pointing out an objection against the third party’s claim against the creditor’s debtor or his legal successors, to whom the debtor has transferred certain rights.

Terms of Refuting debtor’s legal acts

The basic general premise for refutation is

  • that there is a creditor’s claim against the debtor due for collection (regardless of when it arose) and
  • that the debtor is insolvent (which the creditor is obliged to prove).

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Specifics of branch operations in Serbia

A foreign company branch office is a separate organizational unit of a company in the territory of the Republic of Serbia through which the company performs activity in accordance with the law.

A foreign legal entity may permanently perform activities on the territory of the Republic of Serbia through a branch established and registered following the regulations of the Republic of Serbia. The following rules regulate the registration and operation of a component of a foreign legal entity:

  1. Companies Act
  2. The Law on the Registration Procedure in the Business Registers Agency
  3. Foreign Trade Act
  4. Law on Foreign Currency Transaction
  5. Law on Payment Operations
  6. Law on Accounting
  7. other bylaws adopted based on the said laws.

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