Stocks

Companies Act

Relationship between the joint-stock company and stockholders

According to provisions of the Companies Act relationship between the joint-stock company and stockholders shall be defined with rights and obligations as follows: Right to a dividend Limitations on payments to stockholders Pre-emptive subscription right of the stocks Financial Support of the company in acquiring stocks Withdrawal and cancellation of stocks due to failure to…
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Companies Act

Decision on the acquisition of company and its legal effect

Provisions of the Companies Act shall regulate concept and types of status changes, as well as procedures for conducting status changes, registration, and legal consequences of registration of status changes. A company in a status change – the transferring company reorganizes itself to the effect that it transfers assets and obligations to another company –…
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Capital market

Types and clases of stocks which issue company

The stocks issued by the company are issued in their dematerialized form and read in the name of a stockholder, and the provisions of those regulations governing the capital market are applied to the registration of the issue of stocks, their legal holders, transfer of stocks, transfer of rights deriving from stocks, limitation of rights…
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Companies Act

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…
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Acquisition, Merger, Division, Spin-off

Status changes according to the Law on Business companies – concept and types

Concept of a Status change: A company in a status change – the transferring company reorganizes itself to the effect that it transfers assets and obligations to another company – the recipient company, while its members acquire shares, i.e. stocks in that company. The essence of the status change is manifested in the following two…
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