Bill on amendments of the Law on Business Entities
The New Law on Business Entities came into force on 11 July 2020 (we have previously written on the novelties of this law https://www.lvmlawfirm.com/new-law-on-business-entities/ ).
On 17 June 2021, the Government of Montenegro enacted Bill on amendments of the Law on Business Entities.
If adopted, the amendments would erase the option for the Central Registry of Business Entities to initiate the court liquidation for the business entities who did not align their business with the provisions of the Law on Business Entities within defined time frames. Instead of court liquidation the non-aligned business entities could be imposed with the misdemeanor penalty up to EUR 10,000.
This Bill comes moths after the deadline for alignment of JSC and public and large LLCs has passed. Other business entities have a deadline until January 2022 to align their business.
The current provisions of the Law on Business Entities which provides that the Central Registry of Business Entities should initiate the court liquidation would be non-enforceable without the further amendments of the Bankruptcy Law.