Measures To Prevent Abuse Of COVID – 19 In Business

The Government of the Republic of Serbia, in order to preserve economic stability, fair market competition, prevent speculative and manipulative operations and abuse COVID 19 by new extra-profit investors in a state of emergency, to protect the existence of economic entities and to prevent non ethic business approach (“to buy property while blood flows through the streets”) has to, without delay:

  1. Prohibit transfer and sale and purchase of control packet of shares in companies until 01.10.2020.;
  2. Prohibit trading of control packet of shares in any form and on any market until 01.10.2020.
  3. Prohibit takeover bid of joint stock companies until 01.10.2020.;
  4. Prohibit squeeze out of minority shareholders by 01.10.2020.;
  5. Prohibit the process of capital increase affecting the change of ownership structure until 01.10.2020.;
  6. Prohibit the adoption of decision on disposal of high value assets by the Assembly of Joint Stock Companies and Limited Liability Companies and disposal of high value assets until 01.10.2020.;
  7. Prohibit the adoption of decisions to initiate bankruptcy or liquidation or reorganization proceedings by the bodies of companies and prohibit the courts to render decisions on opening of bankruptcy or reorganization proceeding on any motions or requests until 01.10.2020.;
  8. Prohibit holding a general meeting of assembly of shareholders except through electronic means of communication;
  9. Delaying the submission of annual financial statements by 01.10.2020.;
  10. Collection of VAT from realized not invoiced value until 31.12.2020.;

Assuming that by 01.10.2020. we will see the real impact of COVID 19 on the economy of the Republic of Serbia, the Government of the Republic of Serbia would have the opportunity to change the above decisions or to abolish them completely.