The basic framework of corporate governance system is set by the relevant laws and by-laws.
The Law on Business Companies lays down the basis of corporate governance system, primarily in the manner that it regulates the formation of joint stock companies, i.e. their incorporation, operation, reorganization and liquidation. Of particular relevance for the entire corporate governance system are the provisions that regulate the management bodies of joint-stock companies, their competences and responsibilities, their composition and their mutual relationship, as well as the issue of the exercise and protection of the rights of shareholders.
Another relevant systemic law is the Law on Capital Markets that governs the capital market and the procedures for issuance and trading of joint stock company shares (and other securities) on the financial market, as well as required disclosure of information about public companies.
In this domain, the regulations are also supplemented by the by-laws adopted by the Securities Commission (Rules of the Content, Form and Manner of Publishing Annual, Semi-Annual and Quarterly Reports of Public Companies), as well as the regulations of the Belgrade Stock Exchange (primarily the Rules on Business Operation and Rules on Listing).
The regulatory framework of corporate governance system in addition to the elements prescribed by law and by-laws also includes the elements of internal regulations and voluntary acceptance of the obligations and principles of the best corporate governance practice.