Approval of financial statements in Czech Republic | News Flash

We would like to draw your attention to the corporate obligations related to the end of the financial period. These are as follows:

• discussing and approving the Financial Statements,
• decision on the allocation of profit and loss.
• publication of these documents in the Collection of Deeds.

The Annual Financial Statements shall be discussed at the General Meeting of the company no later than 6 months after the end of the financial period. Therefore, if the financial period ended on 31 December 2020, the Financial Statements shall be discussed and approved by 30 June 2021.

Simultaneously with the Financial Statements, a proposal on the allocation of profit and loss shall also be submitted to the General Meeting for approval. The above documents shall be filed in the Collection of Documents of the relevant Registry Court.

Finally, we would like to point out that the most recent amendment to the Act on Public Registers sets out that if a business corporation does not file in the Collection of Deeds the Annual or Extraordinary Financial Statements for at least two consecutive financial periods, a disciplinary fine of up to CZK 100,000 may be imposed.

Please do not hesitate to contact us if our assistance is needed in relation to the above-mentioned matters, we will be glad to help you.