Act on Business Corporations and request for submission
Each company based in the Czech Republic, which has not adjusted its founding documents according to the new legislation yet, shall submit itself to the Act on Business Corporations, which fully replaced Commercial code, until the end of 2015. Submission to the new Act is done by decision of supreme body of the company.
In order to submit itself to the new Act, it is required to prepare new wording of the founding documents and to adopt resolution of the supreme body in a form of Notarial Deed. There are also several advantages which can be used while changing the founding documents. For example possibility to cancel keeping of the reserve fund or simplifying internal structure of the joint stock company.
Penalties for non-compliance
If the company fails to take the necessary steps by the end of 2015, this may result in receiving a request from the registry court and imposition of a fine up to CZK 100,000. If the company refuses to comply even after receipt of such request, the court may revoke the company and order its liquidation.
Should you require any more details or consider to use our legal advisory in this matter, feel free to contact us, will be pleased to assist you.
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