Originally published October 2005
Introduction
On June 3 2005 Act 216/2005 on the squeeze-out of minority shareholders of joint stock companies took effect (for further details please see "New Squeeze-Out Legislation by clicking on the 'Next Page' link at the bottom of this article). The new law gives controlling shareholders of Czech joint stock companies the option to squeeze out minority shareholders for reasonable monetary compensation. However, after the new law was introduced, it became the subject of criticism, especially from minority shareholders and the Securities Commission. The main complaint was that the rights of minority shareholders in obtaining adequate payment for their shares were not protected sufficiently in the squeeze-out process.
