On 26 November, the Chamber of Deputies of the Parliament of the Czech republic passed an amendment bill to the Civil Code (so-called Little Amendment) and it has been forwarded to the Senate, which is yet to decide upon the further steps. The following series introduces the overview of the most significant proposed changes to the status quo.
2. Power Of Attorney Requisites in Relation to Form of Legal Proceedings
The long awaited amendments to the Civil Code is especially significant in respect of the processes connected with founding of a new company as it explicitly confirms the general rule concluded judicially and confirmed by the Supreme Court that should a public document be required during legal proceedings, the respective power of attorney granted in a written form and with an officially certified signature is sufficient, and a notarial deed is not necessary.
The proposed change is key for the practical use of the regulation as it addresses fairly practical aspects of the issue, and its goal is to simplify the process of utilisation of legal representation based on a PoA and, in doing so, to reduce the connected costs.
The corresponding transitional provision stipulates that a PoA in a written form with officially certified signatures will be possible to use even before the amendment becomes effective for proceedings commencing after it comes into effect.