THE LEGAL REGIME OF CORPORATE LIABILITY IN BOSNIA AND HERZEGOVINA AND LATVIA – A BRIEF COMPARATIVE OVERVIEW

Abstract

The purpose of this research is to provide an overview of the basic characteristics of the legal regime and types of liability of legal entities in Latvia, as a member of the European Union, and Bosnia and Herzegovina, as a candidate for membership in this community of European states. This comparative study highlights similarities and differences between approaches to the criminal and civil liability of legal entities in the two countries. The principal results and major conclusions are that legal entities can be liable for other natural or legal persons, and this liability can be based on law or contract, either for an indefinite number of cases or a specific case. Here, there are minor differences between Bosnia and Herzegovina and Latvia, primarily based on the different treatment of certain companies and the fact that partnerships in Latvian law do not have legal subjectivity, so partners are independently liable. Regarding the liability of legal entities for criminal offenses, both criminal legislations have adopted a model where liability is regulated within criminal law provisions, not through lex specialis. The main difference between the legislations lies in the area of criminal sanctions. Criminal law in Bosnia and Herzegovina foresees penalties and security measures, while Latvian law includes coercive measures that somewhat more broadly restrict the rights of legal entities.