Georgia has sought over the past 15 years to have one of the most modern, user-friendly legal systems among the countries of the former Soviet Union. Amendments have recently been made to the Law on Entrepreneurs, which is the principal source of law in relation to all business entities, including companies, partnerships and unincorporated sole traders. The amendments impose new requirements for single-member companies and strengthen the pre-emption rights of shareholders.
The Constitutional Court recently considered issues raised in the decision of a lower court in which the legal presumption of accuracy and completeness of entries in the Public Register in relation to real estate was declared in part unconstitutional. The decision may have a significant, adverse impact on the real estate market in Georgia and will be relevant to any real estate transaction, including taking mortgage security.