Towards More Flexible Czech Corporate Law: Revised Corporations Act

Abstract

In 2014, the brand-new Civil Code and the Corporations Act took effect in the Czech Republic and introduced innovations to corporate governance of Czech companies which could be considered revolutionary for Czech corporate law. Six years later, Czech lawmakers decided to reflect practical experience with the new law and adopt the first major amendment to the Corporations Act, which took effect last year. This article outlines the most significant changes provided in the amendment (namely in respect of the one-tier management system in a jointstock company, new regulation of legal persons who are board members, new regulation of shareholders’ right to appoint/remove board members or new regulatory framework for shareholders’ say on fundamental transactions), as well as practical consequences that are associated with the new regulation. corporate governance, general meeting, the one-tier management system, fundamental transactions