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Law on Management of Companies Owned by the Republic of Serbia

The Law on Management of Companies Owned by the Republic of Serbia entered into force on September 16, 2024.

This legislation, adopted in accordance with the International Monetary Fund’s recommendations, aims to advance corporatization, improve management practices, and transform the legal structure of state-owned enterprises in the Republic of Serbia. Under the provisions of this Law, enterprises owned by the Republic of Serbia are required to transform into corporations (joint-stock companies or limited liability companies) by the end of 2025.

The Law establishes a centralized ownership management framework. The Ministry of Economic Affairs will serve as the primary oversight body, with specific provisions for the energy sector. In this sector, the Ministry of Energy will oversee electricity production and supply, while the Republic Commission for Energy Networks will supervise electricity transmission and natural gas transportation operations.

These overseeing institutions will not directly manage the corporations. Their mandate encompasses monitoring and enhancing corporate governance, with the authority to implement emergency measures in cases of operational disruption.

The full text (in Serbian and English) prepared by JPM’s Senior Associate Marko Mrđa and Associate Jana Stanojević can be found here.

 

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