Jovovic, Mugosa & Vukovic Attorney at Law Bojana Nikcevic discusses the impact of judicial delays, activities of the Bar Association, and the legislative changes that are set to reshape Montenegro’s competition law, business regulations, and corporate compliance in the country.
"Unfortunately, political and social circumstances continue to have a significant influence on the legal sector," Nikcevic begins. "While there have been some improvements in the judiciary – most notably with the long-awaited appointment of new heads of courts and prosecutor’s office – Montenegro still faces a severe shortage of judges which has led to considerable delays in court proceedings, with many cases being prolonged well beyond reasonable timeframes. In fact, some cases that should have been prioritized have been ongoing for 10 to 15 years, placing a significant strain on the court system and those seeking legal resolutions," Nikcevic elaborates.
Additionally, Nikcevic reports that "one of [Montenegro's Bar Association's] key priorities at the moment is negotiating with the Ministry of Justice to amend the attorneys’ fee schedule, which was last updated in 2017. Given rising inflation and the increased cost of living, legal professionals have seen their costs rise while fee structures have remained stagnant." According to her, the Bar Association is also working on amending other regulations governing the legal profession to further strengthen the position of lawyers.
Nikcevic also reports on several important amendments to key laws in the past two months with relevant ministries launching public consultations on multiple fronts. "One of the most notable developments is the proposed amendment to the Law on the Protection of Competition. If adopted, the amendments would significantly expand the powers of the national competition agency," she says. Currently, if the agency identifies a violation, it must initiate proceedings before the misdemeanor court. "Under the proposed changes, the agency itself would have the authority to impose administrative fines directly, without requiring judicial intervention. This would mark a significant shift in competition law enforcement and could lead to increased activity for legal professionals specializing in antitrust matters."
Another major development, according to Nikcevic, is the introduction of a new Law on Business Companies, which will replace the existing framework from 2020. "The previous law created multiple challenges for businesses, and the government has decided to enact a completely new law rather than attempt piecemeal amendments. The adoption of this law will be followed by complementary legislation on company registration, which is expected to significantly streamline the process of establishing businesses in Montenegro," she explains. "These reforms should improve market conditions and generate increased legal work, particularly in corporate structuring and regulatory compliance."
"While we are not seeing drastic shifts in investment or major structural changes in the economy, businesses are facing challenges in navigating regulatory and administrative processes," Nikcevic argues. "The combination of judicial delays, pending legislative reforms, and broader economic uncertainty means that companies are taking a cautious approach," she explains. At the same time, these very challenges are generating legal work. "As businesses look for ways to adapt to new regulations – particularly in corporate law, competition, and compliance – lawyers are playing an increasingly important role in guiding them through these changes. We expect that, as new laws take effect, inquiries and legal workload in these areas will continue to rise," Nikcevic concludes.
