The National Assembly has adopted an amendment to the Companies Act (ZGD-1M), which introduces significant changes aimed at improving transparency, corporate social responsibility, and sustainable business practices of companies in Slovenia. The amendment transposes four European directives into Slovenian law and follows the objectives of a more transparent business environment and better corporate governance.
Key Changes
Public Disclosure of Tax Information
Companies with annual revenues over €750 million will be required to disclose tax data related to their operations in non-EU countries. This obligation applies to 14 Slovenian companies and enhances transparency regarding their revenues in different countries.
Sustainability Reporting
Moreover, large companies, as well as small and medium-sized enterprises whose securities are listed on the stock exchange, will now be required to prepare sustainability reports. These reports will be included in annual business reports and must be audited. The goal of this obligation is to support sustainable investments and integrate environmental, social, and governance (ESG) factors into business operations.
Gender Balance
Large listed companies and companies with majority state ownership will need to achieve at least 40% representation of the underrepresented gender in supervisory boards. Alternatively, they must ensure 33% representation in management and supervisory bodies. Studies show that gender diversity positively impacts decision-making quality, company performance, and profitability.
Adjustment of Size Criteria for Companies
The threshold for classification as a large company has been raised from €40 million to €50 million in annual revenue and from €20 million to €25 million in assets. Companies that no longer meet the new criteria for large companies will benefit from reduced administrative burdens and costs.
Visible Company Identification
Business entities and sole proprietors will be required to visibly mark their premises at their business addresses. This requirement ensures greater transparency and facilitates inspection oversight.
The amendment to the law aims to strengthen corporate social responsibility, promote sustainable business practices, and reduce administrative burdens. By doing so, it contributes to the creation of a more transparent and responsible business environment in Slovenia.
Source: GOV
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