Global Journal of Politics and Law Research (GJPLR)

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Albanian Court Practice on the Invalidity of Companies


Although the concept of the invalidity of company has been included in the law only in recent years, in practice, this change has encountered some controversy, particularly in the context of the comparison between the invalidity of legal acts and the invalidity under commercial law. Judicial practice, albeit limited to the number of issues on this aspect, has elaborated in detail the concept of invalidity by stating that, unlike civil legislation, the Law “On Business Organizations” establishes a number of specific rules that are deviated from the principles of the generality of the invalidity of legal transactions and, in particular, of contracts as mutual legal actions. Article 231 of the above-mentioned law provides that: “The invalidity of a company or an act that modifies the statute may only result from a particular provision of this law or those legally regulating the invalidity of contracts”, while in paragraph thirdly, this provision cites: “The invalidity of acts or actions other than those provided for in the paragraph above may only result from a violation of a lawful provision or lawfulness in force for contracts.”

Keywords: Albanian, Companies, Court Practice, Invalidity

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