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- Title
KOMPARATIVNA ANALIZA PRAVNE REGULACIJE UPOTREBE UZLAZNIH SREDSTAVA OSIGURANJA.
- Authors
MIHALINA, EMIL; KRIVIČIĆ, IVAN
- Abstract
Upstream guarantees are financial arrangements, ie. guarantees that a company concludes for the benefit of its shareholder. Upstream instruments are not always inherently forbidden, but they may be unlawful if they result in financial assistance, violation of the principle of capital maintenance, or rules on the boundaries of the influence of the parent company. There is abundant jurisprudence on upstream guarantees in comparable jurisdictions, but relatively modest in the surrounding countries (except for the Republic of Slovenia). Probably the most significant test of upstream guarantees was the collapse of the biggest group in the region whose business was interwoven with guarantees in all directions. This paper examines the issue of upstream guarantees through the lens of that case, the largest conglomerate in the region that experienced a collapse. The role of disputed guarantees and their treatment in the settlement of creditors is particularly emphasized. The financing method of the concern is analyzed, where the subsidiaries guaranteed the obligations of the parent company, often without receiving adequate compensation or funds from credit titles or issued bonds. The findings of the work should contribute to the discussion on the legal nature of upstream guarantees and their use in corporate financing in a domestic context.
- Publication
Zbornik Radova: Univerzitet 'Džemal Bijedić' u Mostaru, Ekonomski Fakultet, 2023, Vol 21, Issue 33, p281
- ISSN
0352-258X
- Publication type
Article