The new amendments to the Company Act of the Republic of Serbia allow for company director disqualification.
All directors have a fiduciary duty to do their best for the good of the company. A director must always declare to the executive board or the supervisory board his personal interest in any legal transaction or any legal action the company proposes to enter into.
If a director of a Serbian company is in breach of his fiduciary duties related to his personal interest, the court can make a disqualification order against him. In certain cases, the court may issue such order against a member of the supervisory board, a company representative or a procurator.
The disqualification period is limited to a maximum of one year. In addition to disqualification, the law provides for (1) liability for damages and (2) rescission of the legal transaction or the legal action.
Once the court order on disqualification becomes final, the court will provide it to the Business Registers Agency so that it may be entered into the Central Register of Temporary Restrictions. To search for disqualified company directors by names of companies relevant to their disqualification please visit this link.
What does it mean for a disqualified director?