Regional disqualifications - Zvonko Obradovic & Andon Rumenov
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Transcript of Regional disqualifications - Zvonko Obradovic & Andon Rumenov
Background
Regional Disqualifications
In 2005 both Macedonia and Serbia reformed the business registration process by moving it from a judicial procedure to an administrative procedure within a specialized agencies – Central Register of Republic of Macedonia and the Serbian Business Registry Agency
Disqualifications remained within the judicial system and since the information was not systematically exchanged with the Registries disqualifications were seldom if ever enforced.
This created a legal uncertainty and information void related to protection of creditors and third party interest
Regional Disqualifications
The ReformMacedonia
2009
Legacy of old System
2011+
Platform
2010
Establishment
Establishment of the Register of disqualified
entities within the Central Register
Platform for exchange of information
Register put in operation
2011
Achievement
2011+
Managing authority
Central Register as managing authority
• Courts (Criminal and misdemeanor charges and bankruptcies /liquidations)
• Tax authority – unpaid taxes• Banks (via Clearinghouse) –
locked bank accounts
Regional Disqualifications
Central Register
Blocked Accounts
The ReformMacedonia
Courts
Unpaid Taxes
•Criminal/ misdemeanor charges
•Bankruptcies/ liquidations
Regional Disqualifications
Scope of disqualifications
Ban on opening a new companyIn the duration of the disqualification
Ban on acting in certain capacity (director, board member, etc.), in a company in the duration of the disqualification
Ban on participation as a shareholder (with majority rights) and or being a founder in a new company (for legal entities) in the duration of the disqualification
Scope
Depending on the grounds for the disqualifications
ResultsMacedonia
Regional Disqualifications
Macedonia
37.00095%
Due to blocked accounts
Certificates of non-disqualification are used for protection of third party interest and as a condition for participation in public procurement processes
The disqualifications are updated real time and the numbers vary around 30.000 entities
MK - SRB
337.4777.5%
Imports / Exports ($)
498.157
The Reform - Serbia
Regional Disqualifications
Similar to Macedonia, the reform of the commercial registration was not initially followed up with the regime for disqualifications which were left in the courts
No institutional exchange of the information related to the disqualifications meant no real mechanism for enforcement of the disqualifications
April 2014, though a Norwegian funded project, SBRA launched the project for the implementation of the Register of disqualified entities
Regional Disqualifications
The ReformSerbia
Law on
disqualifications
Governmental procedure (expected to pass parliament in
March/April 2015)
SBRA
Company Register and managing authority of
the Register of disqualifications
Tax
Tax Authority
Institutions
National Bank of SerbiaCourts (Supreme Court)
Central Register of Stakeholders
The System
Expected2015
Grounds for disqualificationsSerbia
Regional Disqualifications
1Misdemeanor and criminal charges
(Court appointed)
2 Bankruptcy and liquidations (Courts)
3 Unpaid taxes (Tax Authority)
4Blocked bank accounts over 120 days –
National Bank
5Shareholder information – Central
Register of shareholders
The foreseen grounds for
disqualifications
Regional Disqualifications
Regional CooperationCross-border
Success
Exchange of corporate data
Exchange of financial data
Cross-Border initiative for
mutual recognition
Information on
disqualifications
Rationale
Regional Disqualifications
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Value of economic exchange between Macedonia and Serbia in the thousands of USD
Historical economic ties
Number of companies trading cross-border and establishing subsidiaries in the other country in the thousands
Institutional data exchange on a “need” basis, creating climate conducive for spill-over of “doubtful and fraudulent” business practices
Regional Disqualifications
Regional disqualifications
Disqualifications as
preventive measures on
national level
Disqualifications as
preventive tools on
regional level
Project initiation –
second half for 2015
Work started on drafting
an inter-registry
agreement on
cooperation
Article 33 EU Service
Directive
Ultimate goal: cross-
border recognition of
disqualifications