The Government of Serbia has expanded the list of public companies set to change their legal form to limited liability companies (LLC), adding JP “Nacionalni Park Kopaonik,” JP “Emisiona tehnika i veze,” and JP “Zavod za udžbenike,” bringing the total to 15.
Some of these decisions are surprising, such as JP “Pošta Srbije,” which had previously been slated to become a joint-stock company (JSC). Similarly, “Putevi Srbije” and “Srbijašume” are transitioning to LLCs despite meeting the criteria to become joint-stock companies.
Under the Law on the Management of Business Companies Owned by the Republic of Serbia, a public company can become a joint-stock company if it meets at least two of three conditions: more than 250 employees, annual income over 40 million euros, or high technical-technological and organizational complexity. Companies that do not meet these thresholds are converted into LLCs.
Experts note that LLCs provide greater flexibility in management, allowing owners to more easily determine the distribution of voting rights and profit sharing, which is more rigid in joint-stock companies.
A key consequence of this transformation is the transfer of property ownership from the state to the newly formed companies. These companies will need to assess the value of their capital and assets, after which the Government will decide which assets will be officially transferred to their ownership.
