Market opportunities and risks are ever-present and hold significant importance for businesses, which must implement adequate measures to safeguard their receivables and guarantee liquidity, stated today Dragan Kujović, Vice President of the Chamber of Commerce of Montenegro (PCCG).

The Chamber of Commerce and Industry of Montenegro, in collaboration with the Association of Lawyers of Montenegro, convened an expert conference today addressing the theme of “Securing Companies’ Claims Against Third Parties.”

The Chamber highlighted that the aim of the event was to furnish entrepreneurs, legal professionals, and academic representatives with a comprehensive understanding of the legal mechanisms for protecting claims, particularly focusing on the insurance of real property assets.

Legal experts included in the discussion were Prof. Dr. Larisa Velić, Dean of the Faculty of Law at the University of Zenica, Bosnia and Herzegovina, and Prof. Dr. Branislav Radulović, President of the Association of Lawyers of Montenegro.

“Market opportunities and risks are ubiquitous and critically important for companies, necessitating appropriate measures to protect their receivables and maintain liquidity,” emphasized Dragan Kujović in his opening remarks, underscoring the importance of understanding the legal framework within which businesses operate and the utilization of relevant security instruments.

He also pointed out that each security instrument comes with specific advantages and risks, and their use depends on the particular circumstances and requirements of the business. Companies must identify risks and challenges and address them with proper mechanisms to ensure more stable operations.

Kujović noted that today’s meeting offered a platform for exchanging knowledge, experiences, and best practices aimed at enhancing the legal framework and business environment in Montenegro.

“This is not just an opportunity for mutual learning but also for developing collaborative solutions that will bolster our economic sector,” he asserted, reiterating that the Chamber of Commerce of Montenegro is committed to supporting its members in navigating legal and economic challenges by initiating and fostering such expert discussions.

Prof. Dr. Branislav Radulović highlighted that securing company claims against third parties involves legal and financial mechanisms that facilitate debt recovery and mitigate the risk of non-payment. He stated that companies utilize various security instruments to safeguard their claims and maintain financial stability.

Radulović explained that security instruments could be based on the debtor’s assets, such as mortgages, liens, or fiduciary transfers of ownership, whereby the creditor gains certain rights over the assets until the debt is resolved. There are also instruments relying on the personal obligation of the debtor or a third party, like bills of exchange, bank guarantees, and debentures, which provide an additional layer of security for claims collection.

“By employing these instruments, companies can diminish the risk of non-payment and ensure their business remains stable. In Montenegro, claims security can be achieved via various legal mechanisms governed by different laws, including the Law on Obligations, the Law on Mortgage, and the Law on Enforcement and Security,” Radulović concluded.

Prof. Dr. Larisa Velić emphasized the significance of insuring business claims as a critical tool for safeguarding enterprises from payment uncertainties. She noted that many business owners in Bosnia and Herzegovina and the region tend to avoid legal consultations to save costs, leading them to enter into complex contracts independently, often without fully understanding the implications.

“Using template contracts may appear convenient, but they can be quite problematic since they often lack vital elements needed for proper protection. Unfortunately, legal assistance is typically sought only when issues arise, which generally results in much higher costs and prolonged resolutions, if they can be resolved at all,” Velić stressed.

She particularly highlighted the necessity of engaging with professionals and recognized that law is a discipline requiring expertise. Signing significant contracts should be preceded by consultations with experts who can advise on securing rights through both obligations and real law mechanisms for claim insurance, which is far more secure.

“Given today’s uncertain market, one must exercise caution regarding who and how legal transactions are conducted, especially as circumstances are continually evolving on a global scale. Therefore, timely action is crucial to lessen the risks businessmen encounter,” she mentioned.

Velić pointed out that timely receivable insurance can lower financial risks, enhance business stability, and foster safer growth.

In a fast-paced business climate, she stated, where illiquidity and delayed payments pose significant hurdles, this insurance becomes not just beneficial but essential.

“Certainty for the creditor regarding claim settlement is vital for the stability of legal transactions, but it is equally critical to avoid imposing unnecessary restrictions on owners in exercising their rights,” she affirmed.

Regarding liens, she clarified that it is defined as a limited real right over a specific asset, granting the creditor the authority to satisfy their claim from the lien’s value in cases of default.

“The right of lien is characterized by its accessory nature, specificity, inseparability, and indivisibility, which deserves special emphasis regarding its application in business practice and the legal challenges entities encounter,” Velić stated.

She underscored practical challenges, such as unresolved property relations, liens on co-ownership shares, and enforcement of matrimonial assets.

“Good faith, diligence, and integrity must serve as the underpinning of all legal transactions, as this is the only way to maintain market stability and safeguard all parties involved in contractual agreements,” she concluded.

According to the Chamber of Commerce and Industry of Montenegro, the lecture provided an in-depth examination of the legal mechanisms for protecting claims, emphasizing the importance of legal certainty and adherence to the legislative framework through the analysis of specific cases and current legal dilemmas.

“To date, the following individuals have participated in the commercial law days at the Chamber of Commerce of Montenegro: Academician Jakša Barbić, Vice President of the Academy of Sciences and Arts and Professor of Commercial Law; Prof. Dr. Dejan Popović, former Dean of the Faculty of Law, University of Belgrade, and Professor of Financial Law; Prof. Dr. Mirko Vasiljević, Full Professor of Commercial Law, former Dean of the Faculty of Law, University of Belgrade; and Prof. Dr. Vuk Radović, Full Professor at the Faculty of Law, University of Belgrade, specializing in Company Law, Commercial Law, and Bankruptcy Law,” stated the Chamber of Commerce of Montenegro.

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