Shareholders in Montenegro
Shareholders in MontenegroUpdated on Monday 19th June 2017
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The shareholder of a Montenegrin company is any person or legal entity that owns at least one share of the company`s stock. According to the Law on Business Organization in Montenegro, the founders of any type of company who execute the foundation agreement become the company`s shareholders. The shareholders in Montenegro are the owners of a company, benefitting from its success in the form of increased stock valuation. The rights and obligations of a shareholder are referred to in the Montenegrin legislation.
Further details on the matter can be provided to you by our lawyers in Montenegro.
The rights of shareholders in Montenegro
The shareholders of Montenegrin companies benefit from special rights among which:
• The right to elect the managing and executive bodies of the company and select the company`s auditor;
• The right to request that the company`s founders compensate the company for any liabilities incurred prior to the day of its registration due to the founder`s failure to fulfill their obligations;
• The right to appoint the director of the company;
• The right to issue new shares;
• The right to make decisions in different situations.
According to the Law on Business Organization, all shareholders in Montenegro are treated equally in the same circumstances. They have such rights in a company as are attached to the shares they own. The shareholders in Montenegro have no other liabilities to the company than the obligation to pay the initial price of all the shares subscribed for. Complete information about the rights of shareholders can be given to you by our attorneys in Montenegro.
Shareholders agreements in Montenegro
There are no special laws which regulate shareholders` agreements (SA) in Montenegro. In this case, the general rules regulating contracts are applied. The mutual rights and obligations of shareholders in Montenegro are regulated by company`s by-laws: Memorandum of Association and Articles of Association. There are no formalities to be complied with by the shareholders` agreements in Montenegro. These agreements can contain information about the rights and obligations of the company`s shareholders. Nevertheless, the Montenegrin law stipulates that all legal aspects related to shareholders are regulated by the Memorandum of Association (MoA) and Articles of Association (AoA).
If you need assistance for the procedures of company incorporation or consultancy in drafting a shareholders` agreement, please contact our law firm in Montenegro.