Articles

Legislative Amendments

December, 2011

Some major legislative changes introduced during the relevant period covered in this newsletter primarily relate to the following normative acts:

1.Amendments to the Civil Code of Georgia
2.Amendments to the Tax Code of Georgia
3.Amendments to the Georgian Law On Enforcement Proceedings
4.Amendments to the Election Code of Georgia
5.Amendments to the Georgian Law On Partnerships of Owners of Residential Apartments 6.Amendments to the Criminal Code of Georgia.

1.Amendments to the Civil Code of Georgia

On October 13th, 2011 amendments were introduced to the Civil Code of Georgia. The chapter dedicated to Lease Contract was completely changed. The amendments affected the definition of leasing, rights of the lessee towards the supplier, rights over the lease subject, prohibition of refusing to fulfill one’s obligations and process of receipt of property. Several new norms were also introduced the Lease Contract concerning:

  • Breach of property supply conditions
  • Rights of the lessee during cession
  • Quality of the leased property
  • Obligations of the lessee to maintain of property
  • Termination of the lease contract
  • Possession and disposition of the property.

The new amendments effectively repealed the Georgian Law On Facilitation of Leasing Activities.

2.Amendments to the Tax Code of Georgia

Pursuant to the amendment dated October 28 2011 to the Tax Code of Georgia definition of the budgetary organization was changed.

According to the old definition, a budgetary organization was an organization which was financed from state budget, whereas the new version defines the said as organization spending budgetary resources or resources within the programs defined by the budget.

Amendment enters into force on January 1st , 2012.

3.Amendments to the Georgian Law On Enforcement Proceedings

On amendments dated October 28, 2011 brought about the following changes to the Georgian Law on  Enforcement Proceedings:

  • Clear-cut definition of the powers of the National Bureau of Enforcement to conclude the agreements with and receive services from the third parties; 
  • The status of an execution policeman was specified;
  • Private  executor was given a possibility to publish public notifications  on the website of the National Bureau of Enforcement;
  • New regulations regarding enforcement expenditures were introduced;
  • Execution proceedings for state and local bodies were simplified;
  • Priority of tax pledge/mortgage in comparison to ordinary pledge/mortgage was established, while   commercial banks and financial institutions were granted with additional protection;
  • Enforcement police was empowered to apply administrative sanctions for breach of its demands.

4.Amendments to the Election Code of Georgia

Amendment to the Election Code of Georgia as of October 31 2011, aimed at designating a special commission charged with determination of accurate electoral lists. The Commission will be formed on the principle of equality and consist of the representatives of the government, opposition and NGOs. Amendment further elaborates on the organizational matters of the Commission. The electoral lists shall be determined not later than July 1st, 2012.

5.Amendments to the Georgian Law On Partnerships of Owners of Residential Apartments

The Georgian Law on Partnerships of Owners of Residential Apartments was amended on November 3rd, 2011. Article 101 was added to the said law whereby a member of a partnership is empowered to develop/improve his/her individual property without the consent of the partnership. The development/improvement may affect the common ownership without causing, however, the enlargement of individual property.

6.Amendments to the Criminal Code of Georgia

Pursuant to the amendments introduced to article 5 of the Criminal Code, the Jurisdiction of Georgia was extended. Namely, citizen of Georgia may become liable for the actions committed abroad despite the fact whether such actions are punishable or not in that specific country. This article covers four types of the crimes:. These are: commercial bribery, bribery (either accepting or giving out bribes) and trading with the influence.

The margins of defended commercial secrets has also changed. Only illegal gathering of information containing commercial or bank secrets for the purpose of illegal spreading or illegal application were punishable before. After changes insider information is also protected by the law. In addition, the purpose for the acts is added – the crime can be committed for the purpose of giving such information to the third persons.

The margins of the criminal liability of the legal person has also been changed. After the amendment companies will be liable for the infringement of the following articles: 1431, 1432, 158, 186, 189, 192, 1921, 194, 1941, 1951, 2003, 221, 2241, 2271, 2272, 2311, 2312, 255, 2551, 260–271, 284, 285, 286, 3222, 323–330, 3301, 3302, 3311, 339, 3391, 3441, 362, 364, 365, 372 and 406.

These articles include: Trafficking (1431), Disclosure of Secret of Private Conversation (158), Purchase or Sale of Illegally Obtained Object at Previous Knowledge (186), Encroachment Upon Right of Intellectual Property, Illicit Entrepreneurial Activity (192), Legalization of Illicit Income (194), Commercial Bribe (221), drug-related offences (260-271), computer crimes (284-286), terrorism (323-330), Preparation or Using of Forged Document, Seal, Stamp or Blank (362), Production, Purchase or Sale Of Weapons of Mass Destruction and others.

                                                              


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