The extensive amendment of the Act No. 90/2012 Coll., on Commercial Companies and Cooperatives (Business Corporations Act) (“Business Corporations Act“), is now in the legislative process. The amendment of Business Corporations Act reflects primarily legal opinions of professional public.
The most fundamental changes are in particular changes regarding:
- the conception of monistic system of internal organization of join-stock companies (e.g. revocation of statutory director);
- rules of the profit distribution;
- some new rights connected with the shares in the limited liability companies and join-stock companies (right to choose the member of the executive body etc.); or
- possibility to pay the monetary contribution to the share capital in amount not exceeding CZK 20,000.- in different way then on the special bank account opened with the bank for this purpose.
The proposed legislation brings further changes regarding both business corporations in general and their specific types – public companies, limited partnerships, limited liability companies, joint-stock companies and cooperatives.
It must be noted that the amendment of the Business Corporation Act is still in the legislative procedure where further amendments and proposals thereto might be made. The expected date of entry into force of this amendment is 1 January 2020.
We will continue to monitor the whole process for you and provide you with information on its further development.
Should you have any questions or queries, do not hesitate to contact us.
Mgr. Bc. Štěpánka Vajdová, junior lawyer – vajdova@plegal.cz
Mgr. Jakub Málek, partner – malek@plegal.cz
24. 01 .2019