Squeeze-out of minority shareholders is an important concept for joint stock companies in Bosnia and Herzegovina (BiH). In the previous socialist system, many then-state-owned joint stock companies issued employee stocks as a form of partial privatization, leading to some companies having hundreds of minority shareholders with miniscule amounts of shares. This complicated the management of these companies, as majority ownership changed from state to private, since many small shareholders are unreachable, as they may be deceased or have relocated with unknown addresses. This situation often makes squeeze-outs essential for majority shareholders in order to efficiently manage these companies.

Sajic has successfully represented Elektropenos BiH a.d. Banjaluka in a commercial dispute worth EUR 31 million, including interest. 

Under Bosnia and Herzegovina law, a pledge can be granted solely to a creditor of a claim. This hampers the creation of effective security for securing syndicated facilities (e.g.,  loans provided to debtor by more than one lender). In practice, this is solved by creating a “parallel debt structure” and appointing a security agent who holds pledges in favor of all lenders. Despite its broad use, this structure has not been tested before local courts. Thus, questions about its validity remain unsettled.

Bosnian lawyers Natasa Krejic and Sanja Djukic have been promoted from Partner to Senior Partner at the Sajic law firm.

Sajic and Kinstellar have advised NLB Bank on its take-over of the majority of shares in Komercijalna Banka a.d. Beograd.

The Milosevic Law Firm has advised Bat Hotel on its sale of the Hotel Bistrica ski resort in the Jahorina mountain of Bosnia and Herzegovina to ZTC Banja Vrucica.

Dimitrijevic & Partners, Mihaj Ilic Milanovic, and Mikijelj Jankovic & Bogdanovic have successfully represented Bosnia and Herzegovina in an investment arbitration with Naveen Aggarwal, Neeta Gupta, and Usha Industries, heard by an arbitration tribunal in Paris.

“The country we live in is, in many ways, just a mirage – there are indications of there being a functioning state, but in reality it is very difficult to see it,” says Maric & Co. Managing Partner Branko Maric, noting that, “for over two years now, since the last general election, we have had a technical government.”

An interview with Milan Kajtez, Head of Legal at UniCredit Bank a.d. Banja Luka about his background and best practices.

Advertising is no easy task for law firms in the former Yugoslavia, and law firm marketing and business development specialists in those legal markets face unique challenges in their attempts to promote their firms and obtain new clients.

The COVID-19 pandemic hit the Western Balkans right during a period of accelerating economic activity and a promising economic outlook for 2020. The rapid spread of the virus forced the governments of the Western Balkans countries to introduce protective measures, lockdowns, and temporary business shutdowns. These restrictions had a devastating direct economic impact on a wide range of sectors – particularly the hospitality and transport industries – and the measures had many indirect side effects that significantly decreased economic activity.

There is an interesting legal tool in the Competition Law of Bosnia and Herzegovina (originally adopted in 2005), that is seldom seen in other jurisdictions. Per the legal framework, the governing body of the local competition authority, the Competition Council, consists of six members appointed in order to reflect the complex ethnic structure of the country: two Bosnians, two Croats, and two Serbs.

In The Corner Office we ask Managing Partners across Central and Eastern Europe about their unique roles and responsibilities. The question this time around: ”What is your single most favorite client matter in your career?”

Although Bosnia & Herzegovina is relatively small, and despite the ongoing COVID-19 crisis, Bojana Bosnjak-London, Partner in the Corporate/M&A practice of Maric & Co in Sarajevo, reports that her team has been busy, noting that they were “lucky to land quite a few good deals.”

Former Karanovic & Partners Partner Patricia Gannon has announced the establishment of Gannon Advisory, which she describes as "a holistic strategic advisory business."

The SEE Legal law firm alliance has announced the formal launch of two new practice groups, one dedicated to Employment and Immigration, headed by Kolcuoglu Demirkan Kocakli Counsel Maral Minasyan, and one dedicated to Intellectual Property, headed by Selih & Partnerji Partner Natasa Pipan Nahtigal.

Indir Osmic has made Local Partner at CMS Sarajevo.

Karanovic & Partners has announced the withdrawal of Founding Partners Patricia Gannon and Dejan Nikolic, after a prolonged process.