Pursuant to Article 10 and Article 26 of the Law on Legacies, Foundations and Funds (»Official Gazette of the Republic of Serbia « No. 59/89) and Article 2 of the Founding Agreement for the Scientific Research Advancement Fund between the Faculty of Economics in Belgrade and the Center for Advanced Economic Studies, the founders hereby adopt the following

R U L E S

of

THE FOUNDATION FOR THE ADVANCEMENT OF ECONOMICS

I GENERAL PROVISIONS

Article 1

The Foundation for the Advancement of Economics (hereinafter: the Foundation) was established on July 19, 2005 by the Founding Agreement for the Scientific Research Advancement Fund between the Faculty of Economics in Belgrade (hereinafter: the Faculty) and the Center for Advanced Economic Studies of Belgrade (hereinafter: CEVES).

The Foundation was established for an indefinite period of time.

The Foundation head office shall be in Belgrade , Kamenička 6.

Article 2

The name of the Foundation shall be the Foundation for the Advancement of Economics.

The abbreviated name of the Foundation shall be FREN.

The Foundation shall have the capacity of a corporate entity.

Article 3

The operations of the Foundation shall be public.

The information on its operations shall be communicated by the Foundation through press conferences, via Internet, articles in newspapers and professional journals, television stories and programs, radio programs, other electronic media, its own bulletins and publications, and other mass media, as well as through different projects reflecting the way in which the Foundation operates.

Article 4

The Foundation may also be joined by other corporate entities as co-founders.

Whenever the Foundation is identified in public, the Faculty of Economics should be highlighted as the first founder, in front of the other founders.

Article 5

The Foundation may also be joined by its members.

The membership and categories, rights and obligations of its members shall be governed by the Foundation membership rules.

Article 6

The Foundation shall have its seal, stamp and logo.

The Foundation's seal shall be a round seal with the following wording in Latin script: The Foundation for the Advancement of Economics including the abbreviated name FREN in the middle.

The Foundation's stamp shall be a rectangular stamp with the following wording: The Foundation for the Advancement of Economics; Ref. No.; Date/Year; Belgrade .

The logo design and form shall be subject to the decision made by the governing bodies of the Foundation.

 

II THE FOUNDATION OBJECTIVES

 

Article 7

The Foundation objectives shall be:

1. Promoting the education and research and/or raising the levels of theoretical and empirical knowledge in the area of economics and related scientific fields, in particular, the knowledge of specific qualities of the Serbian economy and the processes experienced by the transition countries, with the emphasis on the countries of South East Europe;
2. Extending academic and other support to researchers in projects promoting the knowledge of economics;
3. Liaising with international research and educational organizations and institutions, in particular, in South East Europe to develop the cooperation, and the exchange of knowledge and experience relating to the knowledge and skills in the area of economics;
4. Communicating the knowledge gained to the interested and academic circles, economic policy-makers, and public in general.

The documentation, sources and results of the Foundation activities shall be available exclusively for the purpose of contributing to the scientific research and education, and to improve the economic policy and develop international economic cooperation.

Such objectives shall be pursued in line with the Foundation program, and subject to these Rules.

 

III THE FOUNDATION RESOURCES

 

Article 8

The Foundation resources have been participated by its founders, and amount to 30,000.00 dinars, whereas 15,000 dinars have been participated by each of the founders.

The ownership of the resources referred to in paragraph one hereof shall be of a mixed type, i.e. socially-owned in respect of the participation provided by the Faculty, and privately owned in respect of the participation provided by CEVES.

The Foundation resources shall be held in a special account.

The Foundation resources shall solely be used for specific purposes subject to these Rules.

Article 9

The Foundation resources shall be provided from income, grants and legacies, and other sources subject to the law and other regulations.

For the Foundation objectives to be achieved, the income generated by rights and property may be used as decided by its founders.

The Foundation may dispose of its rights and resources, and own assets and property.

Article 10

The founders shall actively be involved in providing the resources needed for the Foundation activities by obtaining different grants for specific purposes, as well as by their own funding planned for specific purposes subject to their budgets.

 

IV THE FOUNDATION BODIES

 

Article 11

The Foundation bodies shall be the Board of Directors, the Supervisory Board, and the Program Board.

The Foundation governing bodies shall be the Board of Directors and the Supervisory Board consisting of the representatives of its founders.

The Foundation professional body shall be the Program Board.

No decisions made by the Foundation bodies shall be inconsistent with the interests of its founders.

Article 12

The Board of Directors shall manage the activities of the Foundation.

The Board of Directors shall have 7 (seven) members, 4 (four) to be appointed by the Faculty, and 3 (three) by CEVES.

The members of the Board of Directors shall be appointed subject to the approval of other founder.

The members of the Board of Directors shall be elected for the term of 3 (three) years, whereas the number of terms shall not be restricted.

Any member of the Board of Directors may withdraw prior to the expiry of the term, upon such member's personal request.

Any member of the Board of Directors may be recalled by the respective founder should the latter find that such member has failed to meet his/her obligations or to act to the best interest of the founder.

Article 13

The Board of Directors shall:

• Adopt the Foundation program;
• Adopt the Foundation membership rules;
• Adopt the rules on the procedures applied in selecting projects, associates and researchers;
• Adopt the rules on remuneration payable to the members of the Foundation bodies;
• Approve the Foundation budget;
• Approve the Foundation interim and annual reports;
• Approve the Foundation annual accounts;
• Approve the Foundation policies and the enactments governing such policies;
• Ensure that the program shall be implemented, and review such implementation;
• Appoint and recall the chair of the Board of Directors;
• Appoint and recall the members of the Program Board;
• Transact other business subject to these Rules.

 

The Board of Directors shall present the reports on its activities to the founders at least once a year, or at shorter intervals if requested by the founders.

The Board of Directors shall make its decisions by majority of votes of all its members.

By exception, the members of the Board of Directors may communicate their votes electronically subject to its Rulebook.

The operating, voting and decision-making procedures of the Board of Directors shall be governed in detail by its Rulebook.

Article 14

The Chairman of the Board of Directors shall be appointed by the Board of Directors from among its members for the term of 3 (three) years, whereas the number of terms shall not be restricted.

Article 15

The Chairman of the Board of Directors shall:

• Represent and act on behalf of the Foundation;
• Ensure and be responsible for the compliance of the Foundation activities;
• Organize and manage the Foundation activities;
• Propose the enactments to be adopted by the Board of Directors;
• Implement the decisions of the Board of Directors;
• Enter into agreements with donors or persons and organizations providing professional services for the purposes of the Foundation and its projects, as well as other agreements;
• Involve in other activities subject to these Rules and other Foundation enactments.

Article 16

The Supervisory Board shall supervise the specific and prudent use of the Foundation resources.

The Supervisory Board shall have 4 (four) members, i.e. 2 (two) members appointed by each of the founders for the term of 3 (three) years, whereas the number of terms shall not be restricted.

The Chairman of the Supervisory Board shall be appointed by the Supervisory Board from among its members for the term of one year.

Any member of the Supervisory Board may be recalled by the respective founder should the latter find that such member has failed to meet his/her obligations.

The Supervisory Board shall present its reports to the Board of Directors and the founders at least once a year.

The operating and decision-making procedures of the Supervisory Board shall be governed in detail by its Rulebook.

Article 17

The members of the Board of Directors and the Supervisory Board, as well as the Chairman of the Board of Directors, shall be entitled to the remuneration for their work in such bodies.

The founders shall each make their respective decisions on the remuneration referred to in paragraph one hereof and pay such remuneration to their representatives in the Board of Directors and the Supervisory Board subject to their budgets and other enactments.

Article 18

The Program Board shall consist of renowned and recognized economists, with distinguished international credibility. Such recognition shall be measured by published articles in the world-class journals.

The membership of the Program Board shall not be limited in number, however, it shall have at least 5 (five) members.

The term of such membership shall not be restricted.

The members of the Program Board shall be appointed and recalled subject to the decisions of the Board of Directors, as proposed by the Program Board.

The operating and decision-making procedures of the Program Board shall be governed in detail by its Rulebook.

Article 19

The initial members of the Program Board shall be:

1. Pavle Petrović
2. Branko Urošević
3. Zorica Mladenović
4. Ranko Jelić
5. Moshe Kim
6. Jurgen Muller
7. Peter Miović
8. Michael Mandler
9. Peter Sanfey

Article 20

The Program Board shall:

• Propose the Foundation operations program;
• Propose the Foundation membership rules;
• Select projects, associates and researchers;
• Perform activities relating to the implementation of the Foundation projects;
• Perform other activities subject to these Rules and other Foundation enactments.

Article 21

The remuneration to the members of the Program Board shall be provided from the Foundation projects subject to the rules on remuneration payable to the members of the Foundation bodies.

Article 22

Until the Chairman of the Board of Directors has been appointed, the activities of the Chairman shall be performed by Kori Udovički, Ph.D., in particular, the activities relating to the registration of the Foundation.

 

V TERMINATION OF THE FOUNDATION

 

Article 23

The Foundation shall be terminated if the founders agree that:

• The Foundation objectives have been accomplished;
• No activities have been performed by the Foundation within the period of one year;
• The procedure to appoint the members of the Program Board has failed to the effect that the Program Board would have had at least five members, even after three rounds of voting;
• There are other reasons for the Foundation to be terminated.

The decision to terminate the Foundation shall be made by its founders.

Article 24

The Foundation shall also be terminated in the event that one of the parties has expressed its intention to terminate the Founding Agreement, as of the date of such termination.

Article 25

Should the Foundation be terminated:

• Each founder shall be entitled to the assets participated by such founder;
• Any property and assets acquired by the Foundation shall equally be divided between the founders;
• Each of the founder shall be fully entitled to any results of the Foundation projects;
• The work under any initiated projects may be continued by both founders.

 

VI MODIFICATIONS AND AMENDMENTS

 

Article 26

Any modifications and amendments to these Rules shall be made by the founders, in the manner and by procedures applicable to the adoption thereof.

Such modifications and amendments may be proposed by any of the founders.

 

VII CLOSING PROVISIONS

 

Article 27

The Rules shall be adopted at the meetings of the governing bodies of both founders to be displayed on the same day on their bulleting boards and become effective as of the eight day after they were displayed.

In Belgrade ,

On 06.10. 2005

FOUNDERS:

1. FACULTY OF ECONOMICS IN BELGRADE

_______________________________

Prof. Miomir Jakšić, Ph.D.

Chairman, Faculty Council

2. CENTER FOR ADVANCED ECONOMIC STUDIES

______________________________

Kori Udovički, Ph.D.

President, CEVES