Official Gazette of the RS, No. 88/2010

Based on Article 112 Paragraph 1 Point 2 of the Constitution of the Republic of Serbia, I
hereby declare

DECREE

on the promulgation of the Law on Endowments and
Foundations

The Law on Endowments and Foundations, ad opted by the National Assembly of the
Republic of Serbia on the Th ird Meeting of the Second Regu lar Assembly Session in 2010,
on 23 November 2010.

Number 177
In Belgrade, 23 November 2010

President of the Republic
Boris Tadi ć, dully signed

THE LAW

on Endowments and Foundations

I. BASIC PROVISIONS

Subject of Regulation

Article 1

This Law shall regulate the establishment and legal status, assets, internal organisation,
entry in and removal from the Register, activi ty, statutory changes, monitoring the work
of endowments and foundations, dissolution and other issues pertaining to endowments
and foundations, as well as the legal status and activity of branch offices of foreign
endowments and foundations.

Endowment and Foundation
Article 2

For the purpose of this Law an endowment sh all be a legal person without members to
whom a founder has designated certain prop erty („capital assets“) with a view to
accomplish general or private interests allowed by the Constitution or law.

For the purpose of this Law a foundation shall be a legal entity without members and
capital assets and established to pursue objectives of public interest allowed by the
Constitution or law.

Objectives of Endowment and Foundation
Article 3

For the purpose of this Law a ccomplishment of the objectives of general public interest
shall be activities aimed at promoting and safeguarding human, citizen and minority
rights, promoting democratic values, European integrations and international
understanding, sustainable de velopment, regional development, gender equality,
improvement of social and heal th protection, promoting and improving culture and public
information, promoting and popularizing science, education, art and amateur sport,
improving position of persons with disabilities, looking after children and young people,
supporting the elderly, enviro nmental protection, fight against corruption, consumer
protection, animal protection, humanitarian and other activities by which endowments
and foundations are accomplishing objec tives of general public interest.

Endowments and foundations shall accomplish objectives of general public interest
referred to in Paragraph 1 of this Article even when their activity targets certain group of
persons belonging to specific professional, national, cultural, religious, language and
gender groups or persons living in a specific area.

For the purpose of this Law ac tivities deemed for private benefit shall include those which
further and support private inte rests of the founder, his family or third party (family
endowments founded with a view of family members’ education and for some other legal
purposes).

Endowment and foundation as Non-profit Non-governmental
Organizations
Article 4

For the purpose of this Law, endowments and foundations shall be non-profit non-
governmental or ganizations.

Voluntary and Independent Esta blishment of Endowments and
Foundations
Article 5

Endowments and foundations shall be established voluntarily and shall be independent in
defining their objectives.

Illicit Objectives of En dowments and Foundations

Article 6

Objectives and activity of endowments and foundations may not contravene the legal
framework and in particular may not be targeted at violent breach of constitutional order
and territorial integrity of the Republic of Serbia, breach of guaranteed human and
minority rights or incitement of inequality, hatred and intolerance based on race,

national, religious, and other group affiliations or orientation or based on gender, sex,
physical, psychological or other features and abilities.

Objectives of endowments and foundations may not be targeted at achieving specific
interests of political parties.

Specific interests of political parties referred to in Paragraph 2 of this Article are shall be
immediate participation in election campaign or fundraising for election campaign of a
specific political party, coalition or a cand idate as well as financing political party.

Objectives and activity of an endowment established by a will must not be directed to
accomplishing private interests that contravene the legal provisions regulating invalidity
of an endowment.

Tax exemption
Article 7

The means (donations, gifts, financial subventions and inheritance and similar) of
endowment, which is established with a view to achieve general public interest, and
foundation shall be exempt from taxes.

Transparency
Article 8

An endowment established with a view of achieving general public interest and a
foundation shall make the annual report and the financial report available to public, via
Internet, print or other appropriate manner.

Endowment and foundation are obliged to deliv er annual financial report to the Agency
for Business Registers (herei nafter: Agency), in accordance with the law governing
accounting and revision.

Life-time of Endowments and Foundations
Article 9

Endowments and foundations shall be establis hed for a limited or unlimited period of
time.

Endowments and foundations shall be established for an unlimited time period if the
Articles of Association do not specify the life-time, event or achievement of a certain
objective.

In case that the Articles of Association do not specify th e life-time of endowments or
foundations, it shall be deemed to last for unlimited period of time.

II ESTABLISHMENT OF ENDOWMENTS AND FOUNDATIONS

Founder and Articles of Association

Exceptionally from provision of paragraph 2 of this article an endowment whose founding
capital value is lower than the value of the founding capital from paragraph 2 of this
article shall be allowed to be registered in the endowments and foundations registry after
the opinion of the Ministry of Culture had been issued (in further text: Ministry), or for
endowments founded on the territory of Auto nomous Province of Vojvodina – from the
authority competent for cultural activities co nfirmed that capital assets of an endowment
are sufficient for achieving ob jectives for establishment.

Provision in Paragraph 2 of this Article shall not apply to endowments whose property has
been nationalized.

Tasks from Paragraph 3 of this Article a competent body of Autonomous Province of
Vojvodina shall carry out as delegated tasks.

Article 13

Rights that the testator of the will had at the time of his death, and which he disposed of
in favour of endowments es tablished with a view to accomplish objectives of public
interest, shall not be part of endowment and shall not calculated in value of will based on
which the requested value is calculated, unless otherwise specified by the testator of the
will.

Revocation of Articles of Association
Article 14

A founder may revoke the Articles of Associ ation of endowments and foundations before
endowments and foundations have been ente red into the Register of endowments and
foundations.

Contest of Articles of Association
Article 15

Any of the founders of endowment and foundati on shall challenge the validity of Articles
of Association, for reason that is considered by the law which governs law on obligations
to be reason enough to render invalid.

Non-inherited Founder Rights
Article 16

The founders’ rights to participate in the management of a public interest endowment
and a foundation as well as other rights they might have with respect to the endowment
and the foundation may not be inherited by their heirs.

III NAME, SEAT AND THE LOGO OF ENDOWMENTS AND
FOUNDATIONS

Name of Endowments and Foundations
Article 17

The name of an endowment and a foundation sha ll be the one stipulated in the Articles of
Association or the Statute and it must co ntain words „endowment“ and „foundation“.

The name of an endowment and a foundation may contain the name of a certain natural
of legal person, state, domestic or foreign organization, international organization and
territorial unit under conditions set by the law.

Use of name referred to in Paragraph 2 of this Article shall be subject to the assent from
a natural or legal person or competent au thority whose name they want to use.

After death of a natural person referred to in Pa ragraph 2 of this Article, the assent of his
heirs in the first degree shall be required for use of his name.

If there are no heirs of the deceased person set fourth in Paragraph 2 the Ministry shall
decide, considering objectives an d significance of the endowment in question whether it
will give the assent to endowm ent and foundation to the name of a historical personality
in its Article of Association. After obtaining an opinion from the competent Ministry, the
Agency will register the name of endowment or foundation.

If the Statute of endowment or foundation provides so, the name of endowment or
foundation, may be entered into the Regist er of endowments or foundations and in
translation to one or more foreign languages provided that the entry be registered after
entry of the endowment or foundation name was registered in Serbian language in
Cyrillic scripture or in the language and scrip t of minority if the Statute stipulated the
requirement of entry in language and script of minority.

The name of endowments and foundations may contain certain foreign words in their
authentic form in case they are part of the name of an international organization that
endowment or foundation belongs to, if they are usual for Serbian, if there is no suitable
translation for them in Serbian or if these are the words from an ancient language.

The name of endowment and foundation cannot contain elements referred to in Article 6
Paragraph 1 of this Law.

Abbreviated Name
Article 18

Endowments and foundations may also have abbreviated name determined by the
Statute of the endowment and foundation.

The abbreviated name is entered into the Registry of Endowments and Foundations.

Making Distinction between Names and Abbreviated Names

Article 19

Name and abbreviated name of an endowment and a foundation cannot be identical with
the name and abbreviated name of anothe r endowment and foundation that were
previously entered or applied to be ente red into the Register of endowments and
foundations.

Mandatory Use of Name
Article 20

In performing their activiti es, endowments and foundation s shall use their name and
abbreviated name in legal procedures in the form entered into the Register of
endowments and foundations.

Seat of Endowments and Foundations
Article 21

Seat of an endowment or a foundation is a place from which activities and the Articles of
Association of endowment and foundation are managed and it is determined by Articles
of Association and the Statute.

The seat of endowment or foun dation must be within the territory of the Republic of
Serbia.

The address and the seat of endowments or foundations shall be entered into the
Register of Endowments and Foundations.

Symbols of Visual Identity
Article 22

Endowment or foundation may have its brand, logo and other symbols in accordance to
the Statute.

Change of Name, Seat and Symbols

Article 23

Authorised body of endowments and founda tions may change name, seat or brand of
endowments and foundations in accordance with law, the Articles of Association and the
Statute.

The seat of an endowment or a foundation spec ified in the Articles of Association can be
changed by the Statute.

IV REGISTER OF ENDOWMENTS AND FOUNDATIONS

Authority Competent for Entry into and Keeping Register
Article 24

Entry into the Register of Endowments and Foundations (hereinafter: Register) is
performed by the Agency as delegated task.

Contents and the manner or management of Registry from paragraph 1 of this article is
decided by the Minister competent for cu ltural affairs (hereinafter: Minister).

Amount fee for entering of endowments and foundations into the Registry and other
services provided by the Agency in the proc ess of Registry management is set by the
Managing Board of the Agency with the approval of the Government.

Agency shall keep the Regi ster through registrar of endowments and foundations
(hereinafter: Registrar)

Conditions and the procedure for appointment and removal of the Registrar and his
authorisations and obligations are subject to provisions of the law governing
establishment and work of the Agency for Bu siness Registers, unless otherwise stipulated
by this Law.

Register Entry
Article 25

Endowments and foundations shall be entered into the Register based on application for
registration.

Application for registration shall contain: da ta on the applicant, data entered into the
Register, date of submission of the applic ation and the signature of the applicant.

Application for entry into the Register shall be submitted by the authorized
representative of endowment and foundation.

The following documents shall accomp any application for registration:

1) Evidence on identity of the founder and the person authorized to represent the
organization (photocopy of ID or passport, excerpts from the registry in which the
founder is registered as legal person);

2) Articles of Association of endowment or foundation, with certified signature of
founders, or valid court decision on inhe ritance if the endowment is being founded
by the will.

3) Resolution on the appointment of an executor of the will if the endowment was founded by the will.

4) Decision on appointment of a Manageme nt Body of endowments and foundations.

5) Statute of endowment and foundation;

6) Evidence that the financial means required for founding of an endowment have been
provided or official expert witness’ assessment of the capi tal assets value in form of
goods and rights.

7) Other papers required by the law;

8) Evidence on payment of fee.

Rejection of Application for Registration

Article 26

Registrar shall reject application:

1) If application, Articles of Association or Statute do not contain mandatory data stipulated by the law;

2) If application is submitted by an unauth orised person or if any of the required
documents is not submitted al ong with the application;

If registration application has some of the faults referred to the Paragraph 1 of this
Article, it will not be rejected if applicant in a timely manner specified by the Registrar
and not shorter than 15 days correct all identified faults.

Conclusion referred to in Paragraph 1 of this Article is final and administrative action may
be instituted against it.

Refusal of Application for Registration

Article 27

Registrar shall refuse application for regi stration of an endowment and foundation:
1) If the name is not clearly distinct from the name of other endowments and
foundations previously entered or duly applied for registration into the Register of
endowments and foundations.

2) If the name of endowmen t and foundation contravene Article 17, Paragraph 1-3 of
this Law.

3) If determines that conditions set by law have not been met.

Decision on rejection of the application from Paragraph 1 of this Article is definite and
administrative action may be instituted against it.

Article 28

Endowments and foundations shall be entered into the Register within 30 days following
duly application for registration

Decision on rejection of an app lication referred to in Paragraph 1 of this Article is definite
and administrative action ca n be instituted against it.

Acquiring Legal Person Capacity

Article 29

Endowments and foundations shall acquire a legal person capacity on the day of entry in
the Register.

Endowments and foundations may not engage in activities before entered into the
Register.

Content of the Register
Article 30

The Register shall contain: t name, seat, address and founding objectives of endowments or
foundation with a note whether endowment in ques tion accomplishes public or private interests;
d a t e o f e s t ab lis h m e n t o f endowments or foundation; economic activity that endowment or
foundation pursue as secondary activity; personal name, place of residence or stay and the unique
identification number of the founder, or in case when founder is legal person – their business name,
seat, registration number, tax identification number; name and surname, the unique identification
number or passport number of the Managing Board members; personal number, place of
residence or stay and the unique identification number of the authorized representative of
endowment ; the life time for which an organization is established and foundation; amendments to
the Statute; data on statutory changes; data on capital assets of endowment; data on deprivation
of the license for pursuing activity of endowment or foundation; data on bankruptcy and
elimination of endowment or foundation; number and date of the decision adoption on entry into
the Register.

Register shall also contain the following information if available:
1) Abbreviated name;

2) Name in foreign language;

3) Data important for legal transactio ns of the endowment and foundation.

When data relating to foreign natural or legal person are entered into the Register,
in s t ead of unique identification number, R eg i ster shall contain their passport number and
the state of issuance, and for foreign legal person – number under which that legal
person is recorded in the Register in home country and name of that Register.

Change of Data Entered into the Register

Article 31

Endowment and foundation shall notify the Re gistration Registrar of any changes that
may have occurred with regard to the data entered into the Register within 15 days
following the occurrence of those changes.

Entry of data into the Register shall accordin gly be subject to provisions of this Law.

Public Access to Register
Article 32

Data entered into the Register shall be publicly available in accordance to law.

Data entered into the Register shall be publicly available via Internet page of the Agency.

V INTERNAL ORGANISATION OF ENDOWMENTS AND
FOUNDATIONS

Statute of Endowments and Foundations
Article 33

The Statute is the highest general ac t of endowments and foundations.

Other general acts of endowment and foundation must be in conformity with the Statute.

Provisions of other general acts that contravene the Statute shall be deemed invalid.

Managing Board shall enact the Statute of an endowment or a foundation, unless
otherwise provided by the Statute.

Content of the Statute

Article 34

Statute shall define the following: name, se at, objectives and activities of endowment
and foundation, management bo dies and their authorities; manner of election of the
Managing Board members after expiration of the mandates of the previous Managing
Board members; manner of dismissal of th e management board members; manner of
appointment and dismissal of the director and other bodies of the endowment and
foundation; mandate duration and rules on de cision-making process; representation of
endowments and foundations; capital asse ts and other assets of endowments and
foundations if they exist; rules on use of the assets of endowments and foundations and
the users; procedure for amending the Stat ute and other general acts, transparency,
save for private interest endowments, mann er of making decisions on acquisition,
affiliation, division, change of legal form or dissolution of endowments and foundations,
rules on allocation of the re maining assets in case of inaction of endowments and
foundations, name and name in a foreign la nguage, if endowment and foundation have
one; stamp of the endowment and foundation and its content, the logo of the
endowment and foundati on if it has one.

The Statute shall regulate other issues of importance for activities and objectives of
endowment and foundation.

Bodies of Endowments and Foundations
Article 35

Bodies of endowments and foundations shall be the Managing Board and the Manager.

The Statute may envisage other bodi es of endowment and foundation.

Endowment and foundation may use different names for their bodies.

Managing Board Membership
Article 36

The Managing Board, with at least thr ee members, shall manage endowments and
foundations.

The founder may be a member of the Managing Board or other bodies of endowment and
foundation set by the Statute.

The founder or the executor of the will shall appoint the President and members of the
Managing Board of endowment and foundation, unless otherwise stipulated by the
Articles of Association and the Statute.

Member of the Managing Board of a public benefit endowment and a foundation may not
be a minor, a person with no business ca pacity, an employee of the organization, a
person that is a member of another management or supervisory body of the
organization, a person which has official capacity to inspect the work of the organization,
or a person whose interests may contrave ne the interests of the organization.

Member of the Managing Board of a private interest endowment shall not be a minor, a
person with no business capa city, a person that is the member of another management
or supervisory body of the endowment and fo undation, or a person monitoring the work
of the endowment and foundation.

Competencies of the Managing Board
Article 37

Management board: shall appoint and dismiss from duty the Director of the endowment
and foundation; enact the Statute; if the Articles of Association do not specify otherwise;
approve the financial plan and annual financial report; decide on manner of use of assets
of endowment and foundation; adopts rules of procedure for the Board; decide on other
issues in accordance with law, Arti cles of Association and the Statute.

Management board shall decide on the chan ge of objectives, statutory change of
endowment and foundation – if so provided in Articles of Association; as well as on
dissolution of the organization and allocation of re maining assets – unless the Articles of Association
provide that these is sues are decided upon by the founder.

Mandate and Work Manner of the Managing Board

Article 38

Mandate of the Managing Board members shall la st for four years with the possibility of
re-election, unless otherwise stipulated by the Statute.

The President of the Managing Board shall a ssemble the board, set the agenda, and chair
the board meetings, unless otherw ise stipulated by the by-law.

In the absence of the President, Deputy Pr esident or a member of the Managing Board
appointed by the Managing Board shall assemb le Managing Board meetings excursive the
authority of the President.

The Managing Board shall pass valid decisions by simple majority votes of total number
of Managing Board members, unless ot herwise provided by the Statute.

Prohibition of Conflict of Interests

Article 39

A member of the Managing Board of a public benefit endowment and a foundation may
not decide on property issues in which he, his spouse or extramarital partner, a straight
line blood relative or side line relative up to the third degree, his relative in law up to the
second degree even if the marriage is terminat ed, appear as interested parties, nor on
issues related to a legal person over whom he has controls or economic interest.

If a spouse or straight line blood relative or side line relative up to the third degree is a
member of the Managing Board of an endowm ent deemed for general public interest and
a foundation deemed for provid ing independent life for persons with disabilities as users
of day-care services, support housing and personal services.

Termination of Membership in the Managing Board
Article 40

Membership in the Managing Board shall be te rminated with the expiration of a member’s
mandate, his dismissal, resign ation, loss of business capacity, death and other instances
specified by the Statute.

Director
Article 41
Director of endowments and fo undations shall: represent the organization, be responsible
for the legality of organization’s work, cond uct its day-to-day operations in accordance
with the decisions of the Ma naging Board, propose a draft financial plan and a draft
annual financial report to the Board, and ma nage other issues in accordance to the law
and the Statute.

Director of endowment and foundation shall be appointed and dismissed by the Managing
Board, unless otherwise specified by the Articles of Association.

Only a person with business capa city that has a place of stay or place of residence in the
Republic of Serbia may be appointed as the Director of endowment or foundation.

Obligations of the Managing Board Members and the Manager
Article 42

In performing their duties members of the Managing Board and the Manager shall act
with a diligence of a good host.

When rendering and executing de cisions relating to the use of the founding capital and
economic activities of the or ganization, members of the Mana ging Board and the Director
shall act with the diligence of a good businessman.

Damage Liability
Article 43

Members of the Managing Boar d and the Director of the endowment and foundation shall
bear joint liability with their complete asse ts for damage incurred to the endowment and
foundation as a result of gross negligence or intent to cause damage, unless during the

decision process their diverging opinion was recorded in the minutes of the board
meetings or unless they were not includ ed in the decision making process.

VI ASSETS OF ENDOWMENTS AND FOUNDATIONS

Assets and the Manner of Assets Acquisition
Article 44

The assets of an endowment shall consist of the capital assets and other assets.

Endowment and foundation shall acquire assets through donations, gifts, grants, financial
subsidies, wills, investment interests, rents, copyrights, dividends as well as any other
legitimate sources.

Pursuit of Economic Activity
Article 45

A public benefit endowment and a foundation may generate income from engaging in
direct economic activities, provided that:
1) Activity is related to the objectives of endowments and foundations;

2) Activity is envisioned by the Statute;

3) It is a secondary activity of endowments and foundations;

4) Activity is entered into the Register.

Legal transactions that the endowment and foundation has engaged in, which contravene
the Paragraph 1 of this Article are valid, unl ess the third party was aware or must have
been aware of non-compliance of the activi ty with the requirements set forth in
Paragraph 1 of this Article.

Subsidies
Article 46

Financial aid for supporting programmes or for the scarce funds for financing
programmes implemented by the endowments and foundations established with a view
of accomplishing general public interest are provided from the budget of the Republic of
Serbia, autonomous province and local government units under the conditions and
manner proscribed by the law regulating wo rk of association and securing funds to
associations for realisation of programmes of public interest.

Use of Property of an Endowment and a Foundation
Article 47

The assets of endowment and foundation may only be used to support objectives of an
endowment and foundation set forth in its Ar ticles of Association and the Statute.

The assets of endowment and foundation may not be allocated between founders,
members of the management bodies, employ ees and persons affiliated with them.

An affiliated person is a person who is fo under’s, member’s of the management board or
employee’s souse or extramarital partner or a straight line blood relative or side line
relative up to the third degree, his relative in law up to the second degree even if the
marriage is terminated.

Paragraph 2 of this Article shall not apply to appropriate awards and necessary travel and
other costs incurred in the course of realization of the organization’s goals, commitments
arising from contracts with third pa rties, and salaries of employees.

The capital assets of endowments may not be reduced below the minimum value of
capital assets.

Founder may in the Articles of Associatio n determine the minimum value below which
the capital assets of endowment may not be reduced, which may not be lower that the
minimum value set by this Law.

Liability for Obligations of Endowments and Foundations

Article 48

Endowments and foundations shall be held liable with all of their assets for the
obligations arising from their legal transactions.

Overstepping of Legal Subjectivity
Article 49

By a derogation from provisions of Article 48 of this Law, the Founder, the Manager and
member of the Managing Board shall also be held liable for obligations arising from legal
transactions of endowment and foundation, if they disposed the assets of an endowment
and foundation as their own or if he misused them for illegal and fraudulent purposes.

Persons referred to in Paragraph 1 of this Article shall bear joint and unlimited liability for
the endowment and foundation obligations.

Business Books and Financial Reports
Article 50

Endowment and foundation shall keep business books, draw and submit financial reports
in accordance to regulations on accounting and revision matters.

VII DISSOLUTION OF AN ENDOWMENT AND A FOUNDATION

Conditions and Manner of Removal from the Registry

Article 51

Endowment and foundation shall loose the legal person capacity following removal from
the Registry.

Endowment and foundation shall be removed from the Registry:
1) If the competent body of the endowment and foundation, or a founder if so provided by the Articles of Association and Statute, has adopted the decision on dissolution of
the endowment and foundation;

2) Following completion of the bankrupt cy proceedings over organization and
foundation;

3) If the work licence of endowm ent and foundation was terminated;

4) If the status of endowment and foundation has changed causing termination of activity of endowment and foundation, in accordance to this Law;

5) If the decision on entry into the Registry determined invalid by a valid legal act;

6) In other cases stipulated by the Ar ticles of Association and the Statute.

In cases referred to in Paragraph 2, points 1) , 3), 5) and 6) of this Article, the removal
from the Register is completed after the elimination and bankruptcy proceedings, unless
otherwise provided by law.

A note on the completion of elimination and bankruptcy proceedings shall be entered into
the Register.

Decision on rejection, of an a pplication referred to in Paragrap h 1 of this Article, enacted
by the Registrar shall be defini te and administrative action may be instituted against it.

Decision referred to in Paragraph 5 of this Article shall be delivered to the Ministry
without delay.

Deprivation from the Licence for Pursue of Activity
Article 52

The Ministry or the provincial authority of Vojvodina as competent for cultural issues shall
adopt a decision on the prohibition of activi ties of an endowment or a foundation whose
objectives or actions contravene provisions of Article 6 of this Law or if endowment or
foundation become a member of a foreign or an international organization whose
objectives and activities contravene provisions of Article 6 of this Law.

Decision referred to in Paragraph 1 of this Article shall be definite and administrative
action can be instituted against it.

Tasks from Paragraph 1 of this Article a competent body of Autonomous Province of
Vojvodina shall carry out as delegated tasks.

Final decision from Paragraph 1 of this Article is delivered to the Registrar without delay,
so that the removal from the Registry can be completed.

Elimination and Bankruptcy
Article 53

Issues related to elimination and bankru ptcy of endowments and foundations are
regulated by respective regulation s on elimination and bankruptcy.

Issues related to elimination and bankru ptcy of endowments and foundations not
regulated by the regulations on elimin ation and bankruptcy of endowment and
foundation will accordingly be regulated by the regulations on elimination and bankruptcy
of companies.

If the minimum value of capital assets decrease s in such a way as to stop satisfying the
conditions set forth in Article 12 Paragraph 2 of this Law, and the elimination procedure
does not get initiated, the endowment will chan ge its legal status to status of foundation.

Statutory Changes
Article 54

Endowment established with a view to accomp lish general public interest may be split
into two or more endowments established with a view to accomplish general public
interest.

An endowment established with a view of accomplishing general public interest shall
merge with or be acquired by another endo wment or a foundation established with a
view to achieve gene ral public interest.

Foundations may be split into two or more foundations.

Foundations may merge with or be acquired by another foundation or endowment
established with a view to ac hieve general public interest.

Endowment established with a view to accomplish private interest may merge with
foundation or endowment established with a vi ew to accomplish general public interest.
By registering this affiliation, the affiliated endowment stops its work, while affiliating
endowment or foundation continues working.

Endowment established with a view to accomplish private interest may merge with
endowment established with a view to accomplis h private interest. By this affiliation, the
affiliated endowments cease to exist while the newly emer ged endowment can act only
for private interest.

Provisions of the law regulating status of companies shall apply accordingly to statutory
changes of endowments and foundations.

Allocation of Remaining Assets

Article 55

The remaining assets of endowm ents and foundations shall be allocated in accordance to
the Articles of Association or the Statute of endowment and foundation.

The remaining assets of an endowment established with a view to accomplish general
public interest and foundation shall only be distributed to another endowment,
foundation or an association which ha s the same or similar objectives.

The Managing Board shall decide on allocation of the remaining assets, unless otherwise
provided in the Articles of Association or the Statute.

If the Managing Board or another body or pers on appointed to decide on allocation of the
remaining assets, fails to render a decision to that effect, the local government units, on
whose territory the seat of the endowment and foundation is located, shall render a
decision to that effect.

VIII ENTERY OF REPRESENTATIVE OFFICES OF FOREIGN
ENDOWMENTS AND FOUNDATION S INTO THE REGISTER OF
FOREIGN ENDOWMENTS AND FOUNDATIONS

Definition of Foreign Endowments and Foundations

Article 56

A foreign endowment and foundation shall be the legal entity with no membership with
seat in a third country organized in accordance with law of that country with a view to
accomplish objectives deemed for public interest or interests allowed by the Constitution
and law.

Provision of this Law regulating entering into the registry, change of data entered into
the Registry, activities, activity and revocation of work licence shall apply accordingly on
representative offices of fore ign endowments and foundations, unless otherwise provided
by international agreements or law.

Registration of Foreign Endowments and Foundations

Article 57

A representative office of a foreign endowmen t and foundation may engage in activities
in the Republic of Serbia following entry into the Register of Foreign Endowments and
Foundations.

Registration of foreign en dowments and foundations in the Register of foreign
endowments and foundations is conducte d by the Agency, as delegated task.

The Agency shall regulate the manner of entry into the Registry and keeping the Registry
referred to in Paragraph 1 of this Article through the Registrar.

Content and the manner of keeping the Register referred to in Paragraph 1 of this Article
shall be regulated by the Minister.

Amount fee for entry of repr esentative offices of foreign endowments and foundations
into the Registry and other se rvices provided by the Agency in the process of managing
the Register referred to in Paragraph 1 of this Article is set by the Managing Board of the
Agency with the approv al of the Government.

The following shall be submitted along with the application: a certified translation of a
decision on an registration of endowment and foundation in the domiciled country, or a
certificate (statement) certified by a competent court or public notary confirming that
endowment and foundation are recognized as a legal person in the domiciled country
even without being entered in the proper Register; a certified translation of a decision of
the competent body of endowment and fo undation on the establishment of a
representative office in the Republic of Se rbia and representative office in Serbia, a
certified translation of excerpts from the Arti cles of Association or the Statute stipulating
the objectives of the foreign endowment and organization; and a photocopy of ID or
passport of the representative office in the Republic of Serbia.

Provisions referred to in Article 25 Paragraph 2 of this Law shall apply accordingly to
content of application for registration.

Prior to registration, the repr esentative office of a foreign endowment and a foundation
shall acquire work permit referred to in Article 25 Paragraph 5 of this Law.

Content of the Register of Fore ign Endowments and Foundations

Article 58

Register of Foreign Endowments and Founda tions shall contain: name, objectives and
seat and address of foreign endowment and foundation, the seat of the representative
office of the endowment and foundation in the Re public of Serbia and its regional offices,
if it has set up regional offices; name of the person authorized to represent the
endowment and foundation in th e Republic of Serbia, number and date of the decision on
entry of the representative office into the Register of repr esentative offices of foreign
endowments and foundati ons, the number and the date of the decision on removal of the
representative office from the Registry of foreign endowments and foundations .

The Registrar shall in eight days after entr y of representative office of a foreign
endowment and foundation into the Register no tify the Ministry or a competent authority
of the province of Vojvodina.

Application of Provisions on Empl oyees with Representative Office of
Foreign Endowment and Foundation
Article 59

Foreign citizens employed with a representative office of a foreign endowment and
foundation shall be subject to provisions regu lating labour status of foreign citizens.

Citizens of Serbia employed with a repres entative office of a foreign endowment and
foundation shall be subject to provisions regulating the labour status of domestic citizens.

Removal from the Register of Fore ign Endowments and Foundations

Article 60

The representative office of foreign endowment and foundation shall be removed from
the Register if:
1) the foreign endowment or foundation it is a part of has ceased to exist;

2) the foreign endowment and foundation it is a part of has rendered a decision on dissolution of the representative office;

3) if the representative office of endowm ent and foundation is revoked of working
licence;

A decision on removal of the representative o ffice from the Register shall be adopted by
the Registrar.

Decision on rejection of the a pplication referred to Paragraph 1 of this Article is definite
and administrative ac tion can be instituted against it.

IX MONITORING

Monitoring Competence
Article 61

The Ministry of Culture shall monitor implementation of this Law.

X PENALTY PROVISIONS

Corporate Offence
Article 62

A fine ranging from 300,000 to 500,000 dinars shall be levied on the endowment and
foundation that engages in economic activiti es unrelated to its objectives or economic
activities not stipulated in the Statute (Article 45 Paragraph 1 Point 1) and 2).

For economic offences set out in Paragraph 1 of this Article a fine ranging from 30,000 –
50,000 dinars shall also be levied on the responsible person of endowment and
foundation.

Infringements

Article 63

A fine ranging from 150,000 to 400,000 dina rs shall be levied on endowments and
foundations if:

1) They engage in activities before it is entered into the Registry (Article 29, Article 29, and Paragraph 2);

2) They engage in economic activities as ma in activities (Article 45 Paragraph 1 Point 3)

3) Uses assets for purposes other than ac hieving its stipulated objectives (Article 47
Paragraph 1)

For offences set out in Paragraph 1 of this Article a fine ranging from 10,000 – 20,000
dinars shall also be levied on the responsi ble person of endowment and foundation.

Article 64

A fine ranging from 50,000 to 200,000 dinars shall be levied on endowment and
foundation if they:

1) Do not make their report on the work av ailable to public (Article 8 Paragraph 1);

2) They use their name or abbreviated name in a form other than the one entered in
the Registry (Article 17. and 18):

3) They fail to notify the Agency about the changes of data entered into the Registry within 30 days (Article 31 Paragraph 1).

For offences set out in Paragraph 1 of this Article a fine ranging from 7,000 – 15,000
dinars shall also be levied on the respon sible person of endowment and foundation.

Article 65

A fine ranging from 50,000 – 150, 000 dinars shall be levied on the representative of the
branch office of a foreign endowment and a foundation which fails to submit the
application for entering into the registry within 6 months following this Law entering into
force. (Article 72, Paragraph 1).

XI TRANSITIONAL AND CLOSING PROVISIONS
Article 66

By-law provisions for enforcement of this Law shall be adopted within 90 days from
enactment of this Law.

Article 67

Procedures for entering into the Register that had been initiated before the day this Law
entered into force shall be concluded accordin g to the provisions of the previous law.

Endowments and foundations from Paragraph 1 of this Article must apply in the Agency
for registration into the Register within 30 da ys from enactment of the decision on entry
into the Register, if the process of registrati on has ended legally after expiration of the
deadline set in Article 68, Paragraph 1 of this Law.

Article 68

Foreign endowments and foundati ons that had been operating in the Republic of Serbia
before this Law came into force shall align their Statute and other general acts with this
Law and shall submit an application and other necessary documents for entering into the
Register within 12 months from the day of this Law entering into force.

Application for entry into the Register of compliance referred to in Paragraph 1 of this
Article and documentation stip ulated by the ministerial decree shall be accompanied by
certificate on previously completed registration in accordance with the law on

Endowments, Foundations and Funds (Official Gazette of FRS, No. 59/89) issued by the
Ministry.

Funds from Paragraph 1 of this Article shall continue their work as foundations under
their Registry name following the day of this Law coming into force.

Endowments and foundations which fail to adhere to the provisions of this Article will
terminate their work after the expiration of deadline specified in Paragraph 1 of this
Article.

Application for entry into the Registry of compliance referred to in Paragraph 1 of this
Article shall not be subject to registration fee.

Article 69

Foreign endowments and foundati ons that had started their activities on the territory of
the Republic of Serbia before this Law entered into force shell be obliged to align activity
with this Law, acquire work permit and submit an application for entry into the Registry
of foreign endowments and foundation s accompanied with all the required
documentation, within 12 months from the day of this Law entering into force.

A foreign endowment and a foundation that fails to observe the provisions referred to in
Paragraph 1 of this Article shall not be allowed to continue its work on the territory of the
Republic of Serbia after expiration of deadlin e specified in Paragraph 1 of this Article.

Article 70

It is forbidden to alienate and utilise a ssets seized in the period from 1945 until
enactment of the Law regulating return of seized assets and compensations for seized
assets.

Article 71

On the day of this Law entering into force, the Law on Endowments, Funds and
Foundations (Official Gazette FRS, No. 59/89) shall cease to govern save in the part
related to regulating the legal status of funds founded or co-founded by the Republic of
Serbia, autonomous province or a local government unit.

Article 72

This Law shall enter into force on the eight day following its publication in the Official
Gazette of the Republic of Serbia, while its application shall start three months following
its coming into force.