DIRECTORS’ EMPLOYMENT

Every legal person and a limited liability company must have a director as a legal representative. The director is in charge of the managing company, representing it and doing the highest jobs which are related to dispositive and administrative activities.

Following the decision on establishing the company, it can be said that the decision on who will be the company’s managing director is the second most important decision when starting a business. Choosing the director is a strategically important administrative decision, to which you should pay special attention. Bad decisions can have negative consequences on business, so it is necessary to consider all the factors when making this decision.

A managing director of a Montenegrin company must be employed with the company, based on a local employment contract. The employment contract of a foreign national must be tied to the length of the temporary residence and work permit, and obtaining the permit is a condition for obtaining employment. 

If a company has one or more founders, one of them can be the company’s managing director at the same time.

Legal Considerations and Common Issues in Directors’ Employment

Director employment in Montenegro encompasses a myriad of legal considerations that are crucial for the smooth operation and legal compliance of a company. AZ Group is adept at addressing these considerations and common issues, offering comprehensive services to ensure your company navigates this critical aspect proficiently. Here are some of the key legal considerations and common issues related to director employment:

Appointment Procedures

Ensuring that the appointment of directors follows the legal procedures outlined by Montenegrin law, including adherence to the company’s bylaws and other governing documents.

Employment Contracts

Drafting and reviewing employment contracts for directors, ensuring they are in compliance with local laws and regulations, and aligned with the company’s interests.

Temporary Residence and Work Permits

Assisting foreign nationals in obtaining the necessary permits to legally serve as directors in Montenegro, and ensuring that employment contracts are tied to the length of these permits as required by law.

Regulatory Compliance

Ensuring that the roles, responsibilities, and actions of directors are in compliance with Montenegrin corporate law, including disclosure requirements and other regulatory obligations.

Dispute Resolution

Providing legal support in the event of disputes involving directors, whether internally within the company or externally with third parties.

Termination and Transition

Advising on the legal aspects of terminating a director’s employment, and ensuring a smooth transition to avoid any operational disruptions or legal liabilities.

Corporate Governance

Ensuring that the governance structures and practices surrounding director employment are robust, transparent, and compliant with local laws.

Liability and Indemnification

Advising on the potential liabilities directors may face and creating indemnification agreements to mitigate risks.

Training and Advisory

Offering training sessions and continuous advisory support to both directors and company stakeholders to ensure a clear understanding of the legal landscape surrounding director employment.

Our seasoned legal team at AZ Group is committed to providing meticulous attention to all legal facets of directors’ employment, ensuring not just compliance but also a strategic approach that aligns with your business goals and mitigates risks. Our services are designed to provide a solid legal foundation for your directorial appointments, promoting a conducive environment for effective corporate governance and successful business operations.