LAWS TO WATCH: Factoring Act
The proposed legislation prescribes the conditions for the performance of factoring activities, as well as the supervision of factoring companies. The bill introduces the obligation for factoring companies to have a minimum share capital of €131,000 and detailed reporting of the supervision and management of risks. It also prescribes the procedure for appointing management and supervisory board members. Management board members are required to have at least three years of relevant experience in managerial positions in the factoring business, or five years in business activities related to factoring.
Supervisory board members have to have at least five years of adequate experience in monitoring the activities of factoring companies. Companies that are established in another EU member state and have obtained a licence to provide services from HANFA, can provide factoring services more easily compared to their Croatian counterparts.
Note: The legislation was sent to the Sabor 2nd reading…