Limited Liability Company After Re-Codification

The re-codification of private law in the Czech Republic will become effective on 1 January 2014, introducing significant changes to corporate matters as well.

As of 1 January 2014 the re-codification of private law will be introduced in the Czech Republic. The new regulation is based on the New Civil Code (Act No. 89/2012 Coll.) (the NCC) and the Act on Business Corporations (Act No. 90/2012 Coll.) (the ABC). Whereas the former creates a general basis for all private law related matters, among other things by setting the basic principles of private law and interpreting criteria, the latter only regulates issues connected with business corporations and related matters.

The changes that have yet to be introduced relate to newly established companies (ie, after 1 January 2014) as well as to existing entities. The aim of this article is to briefly overview the new regulation and to highlight some of the main points and risks for existing companies, their shareholders