Podgorica, (MINA-BUSINESS) – The Union of Municipalities (ZOCG) has submitted an initiative to the Ministry of Economic Development seeking amendments to the Law on Business Organizations in order to extend the deadline for harmonization with its provisions until the end of September.

ZOCG is requesting a postponement of harmonization with the Law on Business Organizations until the adoption of a separate law governing state- and municipally owned enterprises, which is currently in draft form.

The Union of Municipalities recalled that the current deadline for harmonization with the Law on Business Organizations expires at the end of March, by which time local public enterprises, are unable to complete all prescribed obligations due to their specific legal status.

“An even greater problem is the fact that the statutes of local enterprises cannot be aligned with the new law without violating the systemic Law on Local Self-Government, as well as other laws applicable to them, such as those on local administration financing, state-owned property, utility services, labour and prevention of corruption,” the ZOCG said in a press release.

ZOCG added that harmonizing company statutes with the local self-government system would automatically result in violations of the Law on Business Organizations.