EU watch: Amendments to the Czech Commercial Code

Czech Republic

The Czech Commercial Code was subject to certain amendments that became effective on accession of the Czech Republic to the European Union on 1 May 2004. Many of these changes were in fact adopted in 2003, however a recent amendment was approved in April 2004.

A summary of the most important changes follows:

  • registration of company branch offices seated in the EU into the Czech Commercial Registry is now a less complicated procedure;
  • mandatory public offers in joint-stock companies are also applicable to shares in a Czech joint-stock company that are traded on any securities market in the EU or EFTA;
  • if shares are book-entered, the decisive day for payment of dividends is the day of the general meeting that decides on any such distribution of dividends; and
  • if shares are not book-entered, a general meeting may decide on another decisive day for payment of dividends. This day for payment however cannot precede the day of the general meeting and cannot take place after the maturity date of the dividends. 

For further information please contact richard.bacek@cms-cmck.com or on +420 221 098 834