Corporate Governance

Corporate governance refers to relation between management, supervisory board, majority shareholders, minority shareholders, investors, creditors, buyers, employees and other company stakeholders.

Good structured relationships between the above mentioned stakeholders contribute to sustainable economic growth and improvement of economic efficiency of the company, upgrading decision-making process, increased access to foreign capital companies, as well as boosting the confidence of shareholders and investors.

It implies the creation of rules and incentives that serve best to the company interests while respecting at the same time all other liabilities towards other participants.

“Majkić & Majkić" law firm provides legal advice and support to its clients in order to harmonize their operations with the legal rules of corporate governance, code of corporate governance brought by Serbian Chamber of Commerce as well as the principles recommended by the OECD Principles of Corporate Governance, in relation to the questions:

• Business ethics of the company and its social responsibility
• The rights of shareholders
• The proportion of non-executive members and independent members in the bodies of Corporate Governance (Management and Supervisory Board)
• Code of internal procedures
• Strong regulation of transactions between related parties
• Precise regulation of conflicts of interest
• Precise regulation on management fees
• Protect the interests of small shareholders
• Protect the interests of external shareholders
• Mechanisms for corporate control
• Mechanisms for the participation of employees in corporate decision-making
• Mechanisms to overcome deadlock in decision-making
• Transparency of work
• Confidentiality
• Prohibition of competition and others

1.3. Mergers and acquisition

Mergers (when two or more companies form a new, larger company) and acquisitions (when one company buys another) are increasingly common practice in today's business world.

Most often these actions are taken in order to enhance competitiveness and efficiency, increase market share and profit, increase price of shares or to continue cooperation with a strong partner. However, each company has its own reasons and motives for such methods of connectivity.

The law firm “Majkić & Majkić” offers a vide range of services to the clients involved in M&A business project:

• Preparation of due diligence reports
• Advising on legal, regulatory and tax implications of business transactions and offers
• Assistance in negotiating and drafting letters of intent, memorandum of understanding, the transaction agreement, the takeover bid and other related documents
• Advising in relation to the competitive auctions and other situations
• Assessment of litigation and regulatory risks
• Legal assistance in protection of competition
• Submission of requests for issuing approvals for concentration and legal assistance in front of Commission for Protection of Competition