Lali Lazarashvili
Doctor of Law
The University of Georgia.
Professor.
Tbilisi, Georgia
Lali Lazarashvili
Doctor of Law
The University of Georgia.
Professor.
Tbilisi, Georgia
Development of Corporate Law in Georgia – Past, Present, Future Perspectives
Abstract
The report is dedicated to analyzing the path of development of modern Georgian corporate law in terms of future perspectives. Corporate law is a relatively young field in contemporary Georgian law, with only a 30-year history. It studies the law governing the organizational and legal forms of entrepreneurs. The emergence of corporate law is associated with the adoption of the Law of Georgia on "Entrepreneurs" on October 28, 1994, which significantly contributed to the development of Georgian entrepreneurial relations and served as the primary normative framework for the legal organization of entities engaged in entrepreneurial activities until the adoption of the new "Entrepreneurs" law on August 2, 2021.
Initially, the model of Georgian corporate law corresponded to the trends of the general space of the continental European legal family, particularly the model of German corporate law. The "Law on Entrepreneurs" continued and developed the best traditions that Western European commercial codes contributed to legal science. Subsequently, as a result of numerous amendments made to the 1994 law, it somewhat diverged from the continental European model, and ultimately, the country adopted a law with flaws and imperfect legal regulation. In light of this, various well-founded opinions were expressed in the field of Georgian corporate law science regarding the necessity for codification of corporate law in Georgia.
In order to eliminate existing deficiencies, as well as to fulfill the "Association Agreement with Europe" and implement European directives on corporate law, a new codification was carried out, and a new law on "Entrepreneurs" was adopted on August 2, 2021, which is currently in force in Georgia.
What is the effectiveness of the new law? How well does it respond to the challenges of modern business? What perspectives for the development of corporate law can we conceive from the standpoint of the past and present? These and other relevant issues will also be the subject of the report's research.
Keywords: Corporate Law; The Law of Georgia on Entrepreneurs.