Presentation of Implemented Reforms

8/12/2019 Presentation of Implemented Reforms

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MINISTRY OF FINANCEOF THE REPUBLIC OF SRPSKA

WHITE BOOK 2010/2011

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MINISTRY OF FINANCE

Trg Republike Srpske 178000 Banja Luka

Tel: +387 51 339 155Fax: +387 51 339 645

: . .. .

REPUBLIC OF SRPSKA



REPUBLIC OF SRPSKAMINISTRY OF INDUSTRY, ENERGY AND MINING

LAW ON AMENDMENTSTO THE COMPANY LAW



Ministry of Industry, Energy and Mining

ISSUES REGULATED BY THIS LAW

more detailed regulation of the term, manner of establishment,status and registration of branch offices of local of foreigncompanies;

clear differentiation between companies that need notarizationand companies that need notarial certification, of theamendments to the founding act, in order to avoid any doubt in

practice;

limited liability companies and closed joint stock companiesare enabled to increase equity both by monetary andcontributions in kind (money, things and rights). Also,possibility of debt for equity swap is provided up to one half ofthe equity, in accordance with a decision of the general meetingof the company;






internal audit shall be performed by a person employed at thecompany who meets the requirements set forth by a company act.Internal auditor shall not be appointed by the general meeting, ratherhe/she shall be employed in accordance with the requirements setforth by the act of organization and job systematization;

issue of the appointment of audit committee members is regulated inaccordance with the requirements set forth by company acts, fromamong the ranks of independent persons unassociated with thecompany as set forth by the provisions of the Law;

manner of profit distribution by company is specified, regardingcoverage of loss carried over from previous years, legal reserves,statutory reserves, if established by company’s founding act, anddividend. Furthermore, the issue of dividend distribution tostockholders is regulated, including a possibility for general meetingto decide that the profit remains undistributed and be carried over to afuture period (undistributed profit) or to be used for other purposes(e.g. payments to employees, governing board members andexecutive directors);






issue of decrease of one type of equity of an open jointstock company and simultaneous increase of another isspecified, in the manner that the equity reaches theprescribed minimum amount (50,000);

deadline for holding of the annual general meeting is set,and it is set forth that a general meeting must beconvened without delay in cases where loss is identified,regardless of the level of loss;

possibility is provided to post the invitation to thegeneral meeting on the internet site of the StockExchange and/or internet site of the company and/or inone newspaper, as an exception from sending ofinvitation to each stockholder;




Additional information: [email protected]


procedure to exercise the right to vote through a custody bankis set forth, as well as obligations of the custody bank towardsclient in such case;

in cases where the Law requires a qualified majority for adecision to be made on certain issue, the majority required forpositive voting is specified as minimum 2/3 of votes of thepresent stockholders who vote in writing and who own votingstocks for that issue, provided the presence of quorum;

certain strict and unreasonable provisions have been deleted,i.e. those that used to set forth the grounds for exclusion of avoting right. The reason is that the protection of minoritystockholders is provided through other legal instruments set

forth by the Law. Furthermore, instances of blockage of generalmeeting operation have been encountered in the past. Adjacentcountries do not provide for such cases of vote exclusion;






obligation to have the minutes kept by a notary at generalmeetings of open joint stock companies with stockslisted at the official stock exchange market is abolished;

Governing board of a company, rather than the generalmeeting, adopts semi-annual financial statements,because regular general meeting sits once a year;

possibility is provided for joint stock companies to haveone or more executive directors, appointed from theranks of members of the governing board, provided thatthey comprise less than one half of the governing board.Joint stock company with more than two executivedirectors must establish executive board;






in case of a loss, when briefing the general meeting aboutcompany operation and its financial standing, the governingboard proposes also the measures for its coverage;

obligation to establish audit committee is abolished for openjoint stock companies with stocks listed on the official stockexchange market, although they are allowed to provide such a

body by their founding act or articles of association;

obligation of management to make certain acts available tostockholders, for the purpose of copying at own expense, isprescribed; obligation of persons accessing such acts is alsoprescribed;

WHAT IS EXPECTED FROM THIS LAW?





Since certain issues have been defined in a more precise mannerby the Law, and in view of the fact that the Law:

provides for general meetings of joint stock companies to beconvened by posting of invitation on the internet site of theStock Exchange, which is also the cheapest manner ofconvening it, and allows the company to advertise its invitationto a general meeting also on its own internet site or in onenewspapers;

abolishes the obligation to have the minutes kept by a notary atgeneral meetings of open joint stock companies with stockstraded at the official stock exchange market;






describes audit committee as an optional body whosemembers are appointed by company’s general meeting inaccordance with the requirements set forth by the company,

and clearly defines that the internal auditor, as an obligatorybody, is a person employed at the company, in accordance withthe requirements set forth by the company, and

creates the grounds for a joint stock company to have one ormore executive directors, and obligation to establish executiveboard in case of more than two executive directors,

its application in practice should be simpler and lead to costsreduction of company operation.




THANK YOU!



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Temporary Residence and

Work Permits in the Republicof Srpska

REPUBLIC OF SRPSKAG O V E R N M E N T

Ministry of Labor and Veterans

Banja Luka, 22 June 2011

Temporary Residence and Work



Permits in the Republic of Srpska• Law on Employment of Foreign Nationals

and Stateless Persons (Republic of SrpskaOfficial Gazette 24/09)

• Law on Movement and Stay of Aliens and

Asylum (BiH Official Gazette 36/08)• Harmonized with the relevant EU legislation• The Law regulates the requirements, procedure

and manner of employment of foreign nationalsand stateless persons




Permits in the Republic of Srpska

• Annual quota of work permits for theRepublic of Srpska is set by the Institute,upon approval by the Government of theRepublic of Srpska.

• According to the data of the public

institution Employment Institute, 353 workpermits have been issued in the Republicof Srpska as of 31.05.2011




Permits in the Republic of Srpska• The Institute issues a work permit:

– upon request by employer – based on concluded work contract with a foreignnational – with validity up to one year – for specific workplace and – for certain type of job for a period three months

shorter than the validity period of travel document• Work permit for work in the Republic of Srpska is

not required by foreign national categories underthe conditions as set forth by Article 84 of theLaw on Movement and Stay and Asylum (BiHOfficial Gazette 36/08).




Permits in the Republic of Srpska• For foreign investors or founders of a company,

i.e. a company with head office in the Republic

of Srpska, Institute branch shall issue or extendthe work permit regardless whether the recordsof the unemployed persons include persons thatmeet the requirements set forth by theapplication for issue of the work permit.

• Exemptions from the obligation to provide workpermit: foreign nationals performing voluntarytasks in humanitarian organizations, citizens’associations or foundations




Permits in the Republic of Srpska• The 2011 plan of the National Assembly of the

Republic of Srpska includes adoption ofamendments to the Law on Employment ofForeign Nationals and Stateless Persons.

• Amendments are related to exemptions fromobtaining of work permit, and harmonization withthe provisions of Article 84, item v, Article 85,and Article 120, items 3 and 4 of the Law onMovement and Stay of Aliens and Asylum(Official Gazette of Bosnia and Herzegovina36/08).

Presentation of Implemented Reforms

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