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Corona virus pandemic posed great challenges in all spheres of life. Quite naturally, law had to face those challenges, adapt to the "new normal" and bring viable solutions to many problems created by the pandemic. In this paper the authors focus on one specific manifestation of the influence of pandemic on business law - voluntary abstention of business entities from enjoying free transfer of funds. In the Republic of Serbia, this abstention came to effect with entry into force of several laws and bylaws enacted with the aim of neutralizing the negative consequences of the pandemic on economy and business. The voluntary abstention is analysed from the standpoint of company law and the rules on protection of foreign direct investment. After evaluating the prohibition on profit distribution to shareholders, the authors conclude that the enactment of atypical, non-standard measures is necessary during the pandemic and that these measures need to be adopted promptly enough to timely address the problems that they are supposed to solve, but during their enactment one must bear in mind that the short-term benefits should not be off set by long-term damage.

Voluntary abstention of business entities from enjoying free transfer of funds during pandemic