Nika Simonishvili, a lawyer and former chairman of the Young Lawyers’ Association, has warned that the recently proposed regulation on public political activity for business entities allows for broad interpretation. According to him, a company could face penalties not only for statements made by the business itself but also for statements or actions of its directors, partners, or shareholders.
Speaking to BMG, Simonishvili described the regulation as a “terror-like” instrument designed to control the flow of money that the ruling party, Georgian Dream, considers undesirable. Under the proposed amendment to the Administrative Offenses Code, a business entity can be fined for engaging in public political activity that is unrelated to its core commercial activities.
Simonishvili explained that political activity could include, for example, supporting media outlets or organizations that the ruling party does not favor. He noted that the law leaves two critical questions open: which entities qualify as business subjects and what precisely counts as political activity beyond their primary business functions. According to him, this includes any legally recognized business form, such as individual entrepreneurs, limited liability companies, joint-stock companies, and others, encompassing tens of thousands of entities in Georgia.
He added that the regulation could apply not only to corporate actions but also to statements or initiatives by directors, founders, or shareholders. Even participation in protests or financial support for civil society organizations or media platforms could be considered political activity under this framework. “This regulation is intended to control free financial flows in the country, particularly targeting ‘disobedient’ or uncontrolled businesses, and to monitor foreign funding. Essentially, it allows the government to punish businesses based on the political positions or activities of their leaders or stakeholders,” Simonishvili concluded.
