Institut Dr Simo Milošević Statute rejected by majority owner

The adoption of the new Statute for Institut Dr Simo Milošević AD in Igalo has been stalled following a disagreement at the shareholders' assembly. The majority owner, the Government of Montenegro, rejected an amendment proposed by minority shareholder Vile Oliva.

Vile Oliva requested that decisions regarding investments and credit debts exceeding 1.5 million euros require consensus from the Supervisory Board or approval by the shareholders' assembly. The Government maintains that this amendment is not defined by the new Law on Business Societies and argues that accepting such terms could set a precedent for other minority shareholders to demand similar conditions.

Pavle Obradović, Chairman of the Board of Directors, expressed concern that this deadlock could jeopardize the ongoing restructuring and renovation plan for the Institute. The plan involves significant credit borrowing to fund necessary improvements. While Vile Oliva holds nearly 29% of the shares and has previously contributed 7 million euros to cover losses, the current disagreement over the Statute has created a new impasse in the restructuring process.