Borko Mihajlović, LLD*
DISQUALIFICATION OF THE COMPANY’S MEMBER OF MANAGEMENT: NEW SANCTION FOR THE BREACH OF DUTY TO REPORT BUSINESSES AND ACTS IN WHICH EXISTS PERSONAL INTEREST IN THE SERBIAN LAW
Summary
Amendments and supplements of the Serbian Company Law from June 2018 have significantly influenced the duty to report businesses and acts in which exists personal interest, which represents one of the five special duties towards the company, according to the Serbian company law. One of the major novelties in the legal regulation of the duty to report concerns the legal consequences of the breach of this duty, which become more stringent to some of the subjects of this duty. The breach of the duty to report conducted by a director, member of supervisory board, agent, or procurator of the company, according to mentioned amendments of the Serbian Company Law from 2018, has a new form of status liability – disqualification. The subject of this paper is a short analysis of the legal regulation of disqualification of certain subjects of special duties towards the company, in the case of breach of the duty to report businesses and acts in which exists personal interest. Prior to the analysis of the current legal regulation, the author will briefly turn to the remaining consequences of the breach of the duty to report (civil and criminal), as well as to the notion and types of disqualification in the comparative law, aiming to determine the position of disqualification comparing to the remaining legal consequences of the breach of the duty to report, and to some more important comparative solutions.
Key words: duty to report businesses and acts in which exists personal interest, special duties towards company, disqualification of the company’s member of management, reasons for disqualification, period of disqualification.