Termination of an interest in a limited liability company based on an execution warrant
The Czech Supreme Court has addressed the question of the precise time when a shareholder’s interest in a limited liability company ceases to exist if that interest is included in a bailiff’s execution warrant. In a decision on September 19, 2017 (file no. 29 Cdo 5719/2016), the court argued that in order to determine when […]
Proposed amendment to the Act on Faster Development of Transport, Water and Energy Infrastructure
The Czech Transport Ministry has prepared an amendment to Act no. 416/2009 Coll., as amended, on the faster development of transport, water and energy infrastructure. The new law aims to speed up the construction of transport infrastructure. For this purpose, it relies on the doctrine of presumptive title, which would allow construction to start before […]
Can contractual penalties be made contingent on rescission?
In a decision on June 7, 2017 (file no. 23 Cdo 3894/2015), the Czech Supreme Court addressed an important question: Can the duty to pay a contractual penalty be contingent on a breach resulting in rescission of the contract? In the case in question, the parties had concluded a cooperation agreement that stated that if […]
Major amendment to the Capital Market Undertakings Act takes effect on January 3, 2018
On January 3, 2018, Act no. 204/2017 Coll. became effective, amending Act no. 256/2004 Coll., on capital market undertakings, as amended, and related legislation. It should be noted, however, that many provisions of the Act had come into effect 30 days after its publication on July 14, 2017. The amendment brings substantial changes to the […]
Major amendment to the Building Act
On January 1, 2018, Act no. 225/2017 Coll. came into effect, amending the Building Act (Act no. 183/2006 Coll., on town planning and the building code) and other related legislation. This amendment aims to speed up the lengthy process of approving new construction projects. Developers and other experts say shorter waiting times for building permits […]
Competition Office approves Travel Service’s exclusive control of Czech Airlines
In a fast-tracked decision, the Czech Office for the Protection of Competition approved the merger of competitors Travel Service, a.s. and České aerolinie, a.s. (Czech Airlines). This decision is now final. After examining the facts, the Office found that the merger would not significantly distort competition. No duties were imposed on the parties to protect […]
Providing consideration for a debt assignment via a set-off
In a judgment on July 11, 2017 (no. 23 Cdo 906/2017), the Supreme Court addressed a special – and previously unresolved – issue related to consideration for an assignment of debts. The court considered whether a party may demand monetary compensation if arrangements to pay via a set-off proved invalid. The court found that if […]
Taxation of dividends
On September 13, 2017, the General Financial Directorate Coordinating Committee and the Czech Chamber of Tax Advisers considered the issue of dividends distributions under Act No. 90/2012 Coll., on Business Companies and Cooperatives (the Business Corporations Act) and their taxation under Act No. 586/1992 Coll., on Income Tax. Beginning on January 1, 2014, the rules […]
Can a court review an arbitration tribunal decision on lack of jurisdiction?
In a judgment on 14 June 2017 (file no. 29 Cdo 1537/2015), the Czech Supreme Court found it was not entitled to examine an arbitration tribunal decision concerning the tribunal’s own lack of jurisdiction to hear a case under Section 15 (1) of Act No. 216/1994 Coll., on Arbitration Decisions and the Enforcement of Arbitral […]
Office for the Protection of Competition again blocks prison telephone service contract
The Office for the Protection of Competition (ÚOHS) has upheld a first-instance decision that prohibited the performance of a concession agreement on the provision of secured electronic communications for incarcerated persons, which was concluded between the Czech Prison Service and BVfon Czech Telecommunication, s.r.o. in November 2016. The Office announced the decision on its website […]