The dishonest business practice means an employer leaves all of his unpaid financial obligations – including debts towards employees – on the account of his previous company, and then transfers his business to a new company. There are many cases of certain individuals setting up hundreds of companies, leaving behind many empty hands.
The prepared amendment to the Companies Act aims to tackle this problem. If the proposed amendment is confirmed individuals listed on the tax evasion list, individuals who have failed to pay their workers or settle their welfare contributions, and individuals who have been fined by inspectors for committing certain violations in the past year, will not be able to become business owners.
"With the amendments it will no longer be possible to take out the initial capital of a certain company. Until now it was possible to open thousands of companies from the initial capital of one company, with only a loan agreement and the return of funds," explained chief labour inspector Nataša Trček. In addition, under the proposal, someone who has been sent to prison for committing a crime will not be able to set up a company. However, there haven't been many such cases in the past, and therefore one questions the need of including this part in the law.
"We can say that the Companies Act is heading in the right direction, although a bit too shy. Lawmakers worry too much that they may influence the free business initiative. And workers are paying the price," commented Goran Lukić from the Slovenian Association of Free Trade Unions. Lukić still can't understand why the ban for opening businesses for those breaking the law is "only for one year".