Joint stock companies in Kosovo’s financial market : problems with the legal framework

Abstract

Purpose: The purpose of this paper focuses on the review of some legal features that prevent the extension and development of a joint stock companies in Kosovo. Design/Methodology/Approach: The issue has been analyzed by comparing the legislation with several countries in the region alongside by identifying some of the substantial factors of why such a small number of joint stock companies are established in the business practice in Kosovo in relation to other countries, and once they are established, they are even less operative and operational. Findings: Joint stock companies are established by the Law on Business Organizations, but denomination of titles by them should be regulated by the Law on Securities, in which case in Kosovo this regulation has not been issued nor harmonized. Practical Implications: In fact, this phenomenon is in contrary with the extent and role of joint stock companies in developed market economies. Originality/value: Disadvantages of these companies in our country are mainly related to the lack of law on securities, consequently also the regulatory institutions that cover this sector.