Meeting of the shareholders' assembly of a joint-stock company: Challenges of electronic communications

The development of electronic communications has created the preconditions for defining different, inherently alternative rules compared to the traditional rules of joint stock company law governing the convening and holding of shareholders' assemblies. New methods of notifying shareholders of the shareholders' assembly are being introduced, including the granting of electronic proxies for voting, as well as the participation of shareholders in the work of the shareholders' assembly by electronic means. The rules defined in domestic legislation are harmonized with EU law and provide an adequate response to the needs of practice and to the new conditions and advancements in electronic communications in the field of convening and holding shareholders' assemblies of joint-stock companies. The aim of this paper is to analyze certain issues in this area through an overview of the legislative framework and to highlight the positive effects of the application of electronic communications, such as efficiency, lower costs, and simplicity in the procedure for convening and holding assembly meetings. Examples from the current legal environment indicate the existence of virtual assembly meetings, which are not recognized by the Serbian Law on Business Companies. Possible directions for the further development of national legislation in this area include the introduction of virtual assembly meetings, while physical meetings should remain the rule and virtual meetings the exception that companies may use.