PRAVNI ZAPISI • Year X • No. 2 • pp. 472-489
THE PRACTICAL CONSEQUENCESOF SUPPORTING BINARY OR CONTINUUM THEORY ON DEVELOPMENT OF CORPORATE LAW IN THE EUROPEAN UNION AND IN SERBIA
Doc. dr Marija Mijatović
Assistant Professor, Faculty of Legal and Busines Studies “dr Lazar Vrkatić”
e-mail: marija.mijatovic@flv.edu.rs
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Pravni zapisi, No. 2/2019, pp. 472-489
Review Article
KEY WORDS
Corporate law, binary theory, continuum theory, hybrid theory, soft law, corporate governance
ABSTRACT
The question of corporate law development, both in European Union and in Serbia, is above all the matter of choice between different legal instruments. Therefore, it is author’s purpose regarding this paper to explain regulatory consequences that unfold from taking a stand for so-called binary theory, or on the other hand continuum theory. According to the binary theory the controversial subject of soft law is not attributed with the legal quality, which further results in its perceived non-significance, and no need for further promotion of its greater usage. Contrary to this, continuum law theory allows for soft law to be valued as a law category. This leads to the hybrid theory that highlights the importance of combining hard law and soft law acts. In the European Union the tradition of hybrid method usage is already established when it comes to corporate law, whilst in Serbia the need still exists to further promote the possibilities of such an approach. This is especially true regarding the urge to further harmonize national legal system with its European Union counterpart, and regarding the need to improve existing corporate practice.