Commercial Corporations

A number of corporations have been affected by the measures of the Czech government in the sense that convening of shareholders' meetings or member meetings has been significantly hindered (especially if such bodies have a higher number of members).

The newly adopted law, which entered into force as of April 24th, 2020:

  • Allows, during the duration of extraordinary measures, for all bodies of legal persons to adopt decisions by e-mail or by other means of distant communication, even if such an option is not allowed by the founding documents (i.e. foundation deed, bylaws).
  • Allows the co-optation - i.e. the appointment of new body members, should their number fall under a specific threshold, without having to hold a shareholders' meeting.
  • Extends the term of office by three months, unless the person in question does not agree to such an extension. This extension applies if the term of office of a member of an elected body (executive, chairman of the board, member of the supervisory board) expires during the duration of extraordinary measures, or the month following their revocation.
  • Extends the deadline to approve yearly financial statements, provided that this deadline expires during the duration of extraordinary measures or three months after their revocation, by 3 additional months - should it be necessary to approve financial statements (for companies using the calendar year), until 30 June, 2020, this deadline is thus postponed.