The Government of Serbia adopted a new proposal for the Law on the Management of Public Enterprises

The Government adopted the Bill on the Management of Public Enterprises owned by the Republic of Serbia, which regulates the implementation of state ownership policy and management in public enterprises owned by the Republic. The Government announcement states that this is a new bill, given that the President of Serbia withdrew the previous one from the parliamentary procedure, after which public consultations were organized with representatives of public enterprises, non-governmental organizations and economic and business journalists.

- The reason for passing this law is not the privatization of existing public companies, on the contrary, the goal is their empowerment, corporatization and better management, with the intention of achieving better business results. Also, the Law on Privatization stipulates that the subject of privatization cannot be natural resources, goods in general use, as well as goods of general interest - the announcement states.

The draft law applies to JSC (Serbian: AD) or LLC (Serbian: DOO) in which the Republic of Serbia has a member capacity, i.e. a shareholder with more than 50% of the company's basic capital, that is, it has controlling ownership in the company on another basis.

Also, as per the press release, certain provisions of this bill apply to the minority capital company - they refer to the rights and obligations of the representative of the Republic of Serbia in the assembly of the minority company, the conditions he must meet in order to be appointed, the conditions for dismissal, the obligation of professional training etc.

According to the Government, the most significant changes relate to centralized ownership management, and the Ministry of Economy will be the state administration entity to perform the centralized ownership function, with the exceptions in the energy field.

Vlada Republike Srbije

Ministarstvo privrede Republike Srbije

Government

Ministry of Economy

Draft Law on the Management of Public Enterprises Owned by the Republic of Serbia

Law on the Management of Public Enterprises Owned by the State