Legal Regulations

The Law on Business Companies lays down the basis of the corporate governance system, primarily in the manner that it regulates the formation of joint stock companies, i.e. their incorporation, operation, reorganization and liquidation. Of particular relevance for the entire corporate governance system are the provisions that regulate the management bodies of joint-stock companies, their competences and responsibilities, their composition and their mutual relationships, as well as the issue of the exercise and protection of the rights of shareholders.

Another relevant systemic law is the Law on Capital Markets, which governs the capital market and the procedures for the issuance and trading of joint stock company shares (and other securities) on the financial market, as well as the required disclosure of information about public companies.

In this domain, the regulations are also supplemented by the by-laws adopted by the Securities Commission (Rulebook on Public Company Reporting), as well as the regulations of the Belgrade Stock Exchange (primarily the Rules of Business Operation and Rules on Listing).

The regulatory framework for the corporate governance system in addition to the elements prescribed by law and by-laws also includes the elements of internal regulations and voluntary acceptance of the obligations and principles of best corporate governance practice.