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The rise of artificial intelligence (AI) and its application across various industries has inevitably raised questions about its impact on the legal profession. How will AI affect law practice? Will it reduce law firms’ revenues? Will it limit career advancement for lawyers? How will it impact opportunities for legal interns and associates, and how will they gain necessary skills? These are pertinent questions that need to be addressed as we move towards an increasingly AI-integrated world.
Addressing Concerns About AI in Law
Major changes often bring fear and uncertainty about their effects on entire industries. Concerns arise about potential job losses and reduced service costs. A significant 67% of lawyers believe AI will drastically change the legal profession in the next five years. Such apprehensions are not unfounded; historical technological advancements have often disrupted industries, leading to job losses and economic shifts.
However, AI in the legal profession should be seen as an opportunity rather than a threat. AI can handle time-consuming tasks, allowing lawyers to focus on more complex and human-centric aspects of their work. This shift can lead to more efficient and effective legal practices, ultimately benefiting both lawyers and their clients.
Enhancing Efficiency and Creating New Roles
AI can quickly conduct large-scale data analysis, handle legal administrative duties, and analyze and summarize documents. This frees lawyers from non-billable work, allowing them to focus on billable tasks and client interaction. The rise of AI will also create new legal jobs, as firms will need specialists in AI training, consultation, and compliance.
Adapting to Change
AI will change the legal landscape, but it won’t replace highly trained lawyers. Instead, in my opinion lawyers using AI will outpace those who don’t. Generative AI tools will boost productivity by reducing time spent on routine tasks. While AI presents confidentiality and accuracy challenges, it also offers transformative potential. The key to thriving in this new landscape is adaptability. Lawyers must be willing to learn and integrate AI into their practice. This includes understanding how AI works, what it can and cannot do, and how to use it ethically and effectively. Continuing education and professional development will be crucial as AI technology evolves.
Exploration, Research, and Document Generation
Generative AI excels at reading and interpreting large volumes of documents. Lawyers can use this saved time to understand clients’ problems better. AI can find relevant laws and rulings, review evidence, and generate documents, contracts, and letters. In litigation, for instance, AI can be used to analyze past cases and identify patterns that might be relevant to a current case. This can provide lawyers with valuable insights and help them build stronger arguments. Similarly, in transactional law, AI can review contracts and identify potential issues or areas for negotiation, improving the efficiency and accuracy of contract review processes.
Risk Assessment and Due Diligence
AI’s predictive analytics help lawyers make data-driven decisions, such as evaluating litigation success chances. However, AI requires accurate, unbiased data, and lawyers must be transparent with clients about AI-assisted decisions. There are ethical and business concerns associated with AI. Lawyers will need to be transparent with clients about what decisions they’re making with the help of AI. Additionally, predictive analytics requires vast amounts of data, and ensuring the data is accurate and free from bias is crucial. Firms will need to develop protocols for data management and ensure compliance with privacy laws and regulations.
The Changing Role of Lawyers
AI will change, but not replace, the role of lawyers. Lawyers will spend more time on client interaction and understanding legal issues in a human-to-human way. This shift allows more time for education and skill development. Lawyers must become familiar with AI-related regulatory and compliance issues and understand the importance of transparency. The role of a lawyer is inherently human, involving empathy, ethical judgment, and complex decision-making. AI can assist with many tasks, but it cannot replace the nuanced understanding and interpersonal skills that lawyers bring to their work. As AI takes over routine tasks, lawyers will have more time to focus on building relationships with clients, understanding their needs, and providing tailored legal advice.
AI-Powered Legal Tools
AI-powered legal tools perform tasks traditionally done by lawyers, such as document automation, review, legal research, contract analysis, and case pattern recognition. These tools enhance efficiency, reduce costs, and minimize human errors. By leveraging natural language processing (NLP), machine learning, and data analytics, AI can process vast amounts of information quickly and with minimal error. For example, document automation tools can generate standard legal documents such as wills, contracts, and NDAs, saving time and reducing the risk of errors. Legal research tools can sift through thousands of case laws, statutes, and regulations to find relevant information, making research faster and more comprehensive.
Potential Risks of AI in Legal Practice
AI in legal practice poses risks, including data security, ethical concerns, and overreliance on technology. AI should be viewed as an assistant that enhances, rather than replaces, human expertise. Firms must develop robust data security measures to protect sensitive information and ensure ethical guidelines are followed in AI’s use. There are also concerns about the potential for AI to perpetuate biases present in the data it is trained on. Lawyers must be vigilant in ensuring that the AI tools they use are trained on diverse and unbiased data sets and that the outputs are regularly reviewed for fairness and accuracy.
Integrating AI into Legal Practice
Law firms should embrace AI strategically, focusing on augmentation rather than replacement. AI can handle tedious tasks, allowing lawyers to focus on strategy and client advocacy. Firms must invest in training programs and develop ethical guidelines to ensure responsible AI use, including maintaining client confidentiality and accuracy in AI-generated information. Successful lawyers of the future will balance efficiency and growth while navigating the challenges of transformative technology, ensuring their careers are future-proofed. This includes staying informed about technological advancements, participating in continuing education, and being open to new ways of working. By doing so, they can harness the power of AI to enhance their practice and provide better service to their clients. In conclusion, AI has the potential to significantly transform the legal profession. While it brings challenges, it also offers numerous opportunities for innovation and improvement. By embracing AI and integrating it thoughtfully into their practices, lawyers can enhance their efficiency, improve access to justice, and ensure their relevance in an increasingly digital world.
Ivica Jevtic
With the recent amendments to the Companies Law, legislators introduced the institute of convertible loans—an eagerly anticipated option for investors and startup companies in North Macedonia.
In 2022, through amendments to the Companies Law, lawmakers provided investors (third parties) with the ability to convert provided loans into shares. This conversion process involves increasing the company’s share capital by issuing new shares or, in other words, transforming the given loan into shares.
In this article, we will outline the procedure for augmenting the share capital by issuing new shares using convertible loans in a limited liability company.
Convertible loans
The process
The procedure for increasing the company’s share capital is governed by the Companies Law and is executed through the Trade Registry maintained by the Central Registry of North Macedonia.
A loan provided by a third party (investor) intending to convert it into shares must be paid in cash. The conversion of the loan into shares must be completed no later than the end of the third year from the signing of the loan agreement.
To implement this process, the Investor and the Company are required to undertake the following steps:
Convene a General Meeting, extending invitations to all shareholders of the Company.
Pass a resolution to increase the Company’s share capital by obtaining new loans. This resolution requires a ¾ majority of the total votes held by present shareholders in the Company.
Grant priority rights to present shareholders for acquiring the newly issued shares. The Company’s director must invite present shareholders to acquire these shares in proportion to their existing ownership. Shareholders will have at least 15 days to accept or decline the offer from the Company’s Director.
Extend an invitation to the investor to convert the loan into Company shares.
Obtain an acceptance statement from the investor, confirming their agreement to convert the loan into Company shares.
Pass a resolution officially approving the conversion of the loan into Company shares.
Provide bank statements as evidence of loan payments that are being converted into shares.
Execute an agreement for the transformation of the loan into Company shares, certified by a Notary Public in North Macedonia. This agreement, signed by the Investor, the Company’s director, and the shareholders as consenting parties, formalizes the process.
Compile a comprehensive list of parties acquiring new shares in the Company through this conversion process.
How can we help you in this process?
Tosic & Jevtic, attorneys and counselors-at-law, boast extensive experience and expertise in handling various procedures before the Trade Registry. Throughout our professional journey, we have successfully navigated numerous intricate procedures for trade company modifications, including the intricate process of augmenting company share capitals through the conversion of loans into shares.
Our esteemed Law Firm comprises seasoned lawyers ready to guide and support you throughout this process. With our wealth of experience, we assure efficient and effective assistance for our clients.
Conclusion
Prior to the recent amendments to the Companies Law, the conversion of loans into shares was limited to existing shareholders of the Company exclusively.
However, with the latest amendments to the law, this option has been extended to third parties investing in a company, providing them with the opportunity to convert their loans into shares of the Company.
This development presents a favorable option, particularly for startup companies in North Macedonia, as it allows them to attract investors by offering the conversion of loans as a form of security for the investment.
Ivana Jevtic Nikolova
Overview
Despite being a relatively small country, the Republic of North Macedonia has a significant history in the exploitation of mineral resources. In the past year 2022, data indicates that the top 5 mining companies alone generated a total revenue of nearly 270 million euros, with a net profit of around 68 million euros.
While there is an increasing demand for investments in green and non-polluting industries or renewable sources, the impact of the mining sector on the economy of the Republic of North Macedonia cannot be overlooked.
The mining sector positively influences the development of the Macedonian economy. Its contribution to the GDP is approximately 2%, and it constitutes about 3.2% of the country’s exports. The sector directly employs over 8,000 individuals, offering a higher average gross salary compared to other industries. Mining wages surpass those in agriculture, forestry, and fishing by 67.1%, in manufacturing by 58%, in construction by 42.8%, and in retail trade by 45.5%.
Mining activities are often concentrated in small towns where economic development and survival are closely tied to the economic activity of these mining companies. Besides being significant employers and tax contributors, large mining companies indirectly create at least three (3) times more jobs in industries serving as suppliers to these companies.
Compensations
According to the Law on Mineral Resources (Official Gazette of the Republic of North Macedonia no. 136/12, 25/13, 93/13, 44/14, 160/14, 129/15, 192/15, 39/16, 53/16, 120/16, 189/16, and Official Gazette of the Republic of North Macedonia no. 7/19, 99/22, 129/23, and 253/23, hereinafter referred to as the “Law on Mineral Resources”), the concessionaire conducting the exploitation of mineral resources is obligated to pay:
Annual compensation for the use of the space allocated through the exploitation concession, depending on the type of mineral resource subject to the exploitation concession.
Compensation for the exploited quantity of mineral resources, the subject of the concession.
Additionally, in accordance with Article 76 of the Law on Mineral Resources, 78% of the concession compensation goes to the municipalities where the concession activity takes place, while only 22% goes to the state budget. This distribution stimulates local development, especially in small municipalities where these funds are crucial for growth and development.
Safety and Environmental Protection
Safety at work and environmental protection are prioritized in North Macedonia, a candidate country for EU membership. This has led to a significant reduction in workplace accidents and fatalities. The mining sector in North Macedonia currently does not rank among the top 5 industries in terms of injuries and accidents at work.
Regarding environmental protection, one of the major challenges in the mining sector, the Ministry of Environment in North Macedonia regularly conducts strict controls. The requirement for A-integrated environmental permits for the operation of large mining companies ensures minimal or non-existent impact on the environment. In the last 10 (ten) years, there has been no example of significant environmental damage or pollution from any company engaged in the exploitation of metallic minerals, neither in soil nor water.
Summary
While the mining sector is often considered polluting and hazardous, with the proper application of new technologies and legal regulations that enforce strict safety and environmental protection standards, the sector can contribute to sustainable and environmentally friendly growth and development in the Macedonian economy.
Our law firm has actively participated in the most significant deals in the mining sector and has been supporting major mining companies in the Republic of North Macedonia. For more information regarding investment opportunities and legal regulations, please feel free to contact us.
Ivica Jevtic – Managing partner at Tosic & Jevtic law firm
The holder of a concession for the exploitation of mineral resources – the Concessionaire, during the duration of the concession granted by the state – the Grantor, may transfer the concession to another legal entity, respecting the procedure prescribed in detail by the law. The procedure for transfer of exploitation concession of mineral resources is in detail prescribed in the Law of Mineral Resources (“Official Gazette of Republic of Macedonia” no. 136/12, 25/13, 93/13, 44/14, 160/14, 129/15, 192/15, 39/16, 53/16, 120/16, 189/16 and “Official Gazette of Republic of North Macedonia” no. 7/19, 99/22, 129/23 и 253/23, hereinafter referred to as the “Law on Mineral Resources”).
According to the Law on Mineral Resources, the concession for the exploitation of mineral resources, can be transferred only entirety to another legal entity.
Аs provided in Article 47 of the Law on Mineral Resources, the procedure stars with the submission of a request for transfer of the exploitation concession by the Concessionaire to the Ministry of economy of Republic of North Macedonia.
Furthermore, the Ministry of economy prepares and sends a request for preparation of an assessment of the Concessionaire’s business venture to the Bureau of assessment within 15 days from the day of receipt of the request for concession transfer. The Bureau of assessment prepares the Assessment of the concessionaire’s business venture within 60 days from the day of receipt of the request for preparation of an assessment of the concessionaire’s business venture. The Assessment made by the Bureau of assessment is used in this procedure in order to calculate the compensation that the new Concessionaire will be obliged to pay.
After the receipt of the Assessment of the Concessionaire’s business venture, i.e. within 30 days of the day of receipt of the Assessment, the Ministry of economy prepares and sends a detailed proposal and decision for the transfer of the exploitation concession to the Government of the Republic of North Macedonia.
Within 30 days from the day of receipt of the detailed proposal and decision for the transfer of the exploitation concession from the Ministry of economy, the Government of the Republic of North Macedonia makes a Decision on the transfer of the exploitation concession. After making the Decision on the transfer of the exploitation concession to the new legal entity, the Government of the Republic of North Macedonia, as a grantor and the new Concessionaire will conclude an Agreement for transfer of the concession.
The new Concessionaire is obliged to make a payment of the compensation in the amount of seven percent of the estimated value of the exploitation concession according to the Assessment made by the Bureau of assessment, within 30 days from the day of conclusion of the Agreement for transfer of the exploitation concession with the Government of the Republic of North Macedonia. With the payment of the compensation, the procedure for transfer of the exploitation of mineral resources is finished.
Finally, in the Law on Mineral Resources, it is prescribed that automatically with the transfer of the exploitation concession, the rights and obligations arising from the issued permits and approvals by the competent authorities in the Republic of North Macedonia which are obtained by the old Concessionaire, are transferred to the new Concessionaire. With this guarantee prescribed in the relevant law, the new Concessionaire can pick up where the old Concessionaire left off, without unnecessary business interruptions.
Taking into account everything stated above, we can logically conclude that this administrative procedure is quite complex and long, and requires the consent and opinion of many competent institutions during its course. Therefore, we at Tosic & Jevtic Law Firm are at your disposal with our legal advice, tailored guidance and assistаnce in all procedures before the competent institutions.
Ljupka Naumoska Gjorgjievska
MAIN OBLIGATIONS OF THE CONTROLLERS
The issue of personal data protection has become particularly relevant in recent years, especially with the development of the digital era. The latest regulation adopted by the EU to govern this issue is General Data Protection Regulation (Regulation (EU) 2016/679) (hereinafter: GDPR).
Is the GDPR applicable in North Macedonia?
GDPR is not directly applicable in North Macedonia, but as a candidate for membership of the European Union, North Macedonia is in a continuous process of harmonizing its legislation with the EU acquis.
As a result, North Macedonia adopted the Law on Personal Data Protection (hereinafter: Law) which is almost fully in conformity with the GDPR. There are only small variations in some areas which include: specific deadlines for response by the controllers to the subjects’ requests and specific conditions for the data protection officer.
What are the main obligations for the controllers provided by the Law?
In line with the GDPR, the Law provides for the following main obligations of the controllers:
Ensuring lawfulness of the processing
The controllers have to ensure in each specific case that they have legal basis for the processing. Some of the basis provided by the Law are: obtaining consent from the subject; processing based on a contract to which the data subject is party; processing based on a legal obligation etc.
Providing information about the processing to the data subjects
The controllers have an obligation to provide the subjects with certain information defined by the Law before starting the processing. This includes information about the controller and the data protection officer, details about the processing (purpose, duration, scope, recipients), information about the rights of the subjects etc. The controllers also have to ensure that the subjects can exercise their rights stipulated by the Law.
Identifying the processors and governing the relations with the processors
The controllers have to identify if they are about to engage with other parties to process personal data on their behalf (processors). In such cases, the main obligations of the controllers are to conduct analysis of the processor to determine if can provide sufficient guarantees to implement the necessary technical and organizational measures required by the Law. The controllers also have to enter into an agreement with the processor to regulate the mutual relations.
Keeping records of the processing activities
With some exceptions, the Law provides obligations for the controllers to keep records of the activities of the processing. The information that should be included in these records is defined in details with the Law.
Implementation of technical and organizational measures
Identifying transfer of data and taking appropriate legal measures to protect the data
The controllers have to determine if they transfer personal data outside North Macedonia. If the transfer is made to a country within the EU, the controller solely has to inform the Agency for Personal Data Protection about the transfer. If the transfer is made to a third country, the Law provides for other specific conditions to be met for the transfer to be considered secure and legal.
Carrying out a data protection impact assessment
The Law provides that when a type of processing is likely to result in high risk to the rights and freedoms of the subjects, especially when introducing new technologies, the controller is obliged to conduct a data protection impact assessment. The Law and the bylaws provide for a list of cases when this analysis is to be carried out.
Designation of a data protection officer
The Law provides that in most cases, the controllers have an obligation to designate a data protection officer whose responsibility is to ensure that the controller operates within its legal obligations and takes appropriate measures to protect the personal data of the subjects.
The DPO may be employed by the controller or perform the duties on the basis of a service contract
The conditions that DPO has to meet before his/her appointment are the following:
fulfillment of the conditions for employment determined by the Law and other laws,
active use of the Macedonian language,
no ban imposed on the DPO by a court for performing a profession, duty or activity,
completed higher education and
acquired knowledge and skills in relation to practices and laws for the protection of personal data, in accordance with the provisions of the Law.
These conditions are specific for the Law in North Macedonia and are not provided with the GDPR.
Conclusion
Even though GDPR is not directly applicable in North Macedonia, the Macedonian Law on Personal Data Protection is almost in full conformity with the GDPR and provides for the same obligations for the controllers with some minor variations.
The main obligations of the controllers include: ensuring lawfulness of the processing; providing information about the processing to the data subjects; identifying the processors and governing the relations with the processors; keeping records of the processing activities; implementation of technical and organizational measures; Identifying transfer of data and taking appropriate legal measures to protect the data; carrying out a data protection impact assessment; designation of a data protection officer.
Elena Kuzmanovska
Announcement!
The page of https://tosicjevtic-law.com/ will redirect you to www.jpm.law as the firm operate under the brand JPM & Partners from October 30, 2024. This change signifies a rebranding effort, allowing the firm to continue providing legal services under a new identity while maintaining its existing clientele and services.
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