Business Bulletin

Business Bulletin No. 1/2017

In this year’s first edition of the Business Bulletin, we will bring you up to date with the most recent legislative developments and court rulings in the first quarter of 2017— especially the new Act on Insolvency, which introduces important changes across the entire wording of the Act. Concerning proposed legislation, we will inform you about the newly prepared change to the Act on Insolvency, which primarily concerns new debt discharge conditions, and an amendment to the Trade Licensing Act, which removes the obligations of entrepreneurs to report ID information of the members of statutory bodies. We also present you with a quick summary of a comprehensive change proposal to the Act on Experts, Expert Offices and Expert Institutions, the goal of which is to increase control over experts and to increase the requirements on their professionalism. Concerning rulings published in 2017, we chose a ruling of the Constitutional Court, which brings changes to the institute of VAT control statements. We would also like to bring your attention to the fact that apart from shortcomings in the actions of competitors, the Office for the Protection of Competition also looks into the internal documentation of associations. As a practical piece of information, we also put together a summary of developments in the area of personal data protection.

Business Bulletin No. 4/2016

In this issue of Business Bulletin we focus on amendments of the Civil Code and the Act on Commercial Companies and Cooperatives. We have not seen an amendment of the Civil Code this extensive since the beginning of its effectiveness in January 2014. Most of the changes should come into force on January 1, 2018. However, some changes will be effective already in March 2017. We are also pointing out the intention of the government for further changes of the Act on Commercial Companies and Cooperatives which proposes changing various provisions across the entire current wording of the Act, thus removing some mistakes and simplifying certain established institutes. Finally, we briefly inform you about conditions for delivering documents to the data box specified by the Constitutional Court of the Czech Republic.

Business Bulletin No. 3/2016

The end of the year 2016 brought us fairly extensive amendment to the Act on Money Laundering which contains several important changes such as extension of the liable persons and administrative offences. The act also set ups a new register of actual owners of legal persons and trust funds. A welcome update for use in practice is the simplifying of the rules concerning the identification and verification of clients. We also focus on new Act on Consumer Credit which changes the conditions for professional skills of providers and brokers of consumer credits. Finally we inform you on the new Act on Offences and its impact on legal persons.

Business Bulletin No. 2/2016

In this year’s second issue of the Business Bulletin we bring you up to date with the newest legislation – particularly regarding the new Act on the Register of Contracts, new acts adjusting the complex field of administrative ​​criminal law, the new Act on Gambling and the new Act on Business Hours in Retail and Wholesale. Furthermore, we briefly discuss the significant cost reduction when establishing a Ltd. company and an amendment to the Act on the Criminal Liability of Legal Persons which, while expanding the number of crimes which can be committed by a legal entity, provides the possibility of complete exculpation of guilt. We also point out the change to the person of the taxpayer from the acquisition of real estate. Regarding case law, we chose a Supreme Court decision that highlights the problematic aspects in a case, where the company attorney was in fact a senior employee of eg. the legal department of his client.

Business Bulletin No. 1/2016

In this Business Bulletin we bring you a brief information on the Act on the Record of Sales and we point out the practical amendment on the Act on Building Savings Accounts or changes which modified the Act on Public Procurement in the legislative process. From the legislation under discussion we chose the amendment on The Act the Criminal Liability of Legal Persons, the Act on Business Corporations, in which our deputies suggest to return to the institute of a supervisory board member elected by the company’s employees, and the proposed change in the person to pay the tax on acquisition of the immovable property. From the case law published in 2016 we selected the decision of the Constitutional Court related to good faith when assessing the acquisition of property rights by a non-owner or the ruling of the Supreme Court dealing with damage caused by a managing director of the Ltd. company by not returning company property after the termination of the function. Finally, we inform you about a possibility to obtain at anytime and for free the extract from the Criminal Register and about a new possibility of alternative dispute resolution.

Business Bulletin No. 4/2015

In this edition of the Business Bulletin, we bring you important legal news from the end of the year 2015 with the main focus being on the government bill on the new Public Procurement Act from October 2015, the aim of which is to incorporate European directives in the area of the awarding of public contracts and as usual to achieve greater transparency for the awarding and performance of public contracts. Furthermore, we point out the amendment to the Accounting Act, which introduces a categorization of accounting units and re-allows some subjects to keep single-entry bookkeeping. We also inform you of the government decree defining routine maintenance related to the use of an apartment. In the case-law section, we bring to your attention a case related to the manner of acting on behalf of a company towards employees, due managerial care and the liability of the managing director for damage and the duty of the Czech Office for Standards, Metrology and Testing to publish certain technical standards. Finally, we mention news in services provided by the Czech Office for Surveying, Mapping and Cadastre.

Business Bulletin No. 3/2015

In this third edition of our Business Bulletin, we inform you about the most important legal news published during the period from June to October 2015. For the introduction, we prepared brief information about the upcoming amendment of the Civil Code, which was approved by the government in mid-October 2015. Furthermore we inform you on the important change in the Civil Procedure Code and the Code of Execution, which is mainly aimed to enhance the protection of the unencumbered spouse during the execution on the spouse in debt property and it allows successful participants in civil proceedings, who are not represented by an attorney, to claim reimbursement of thein legal costs by a lump sum. Furthermore we also inform about the decree of the Ministry of Finance regarding the financing of exports with the state support, which should provide for better functioning of control mechanisms of grants provided by the ministry. Regarding the case law, we chose the judgment on the concurrence of functions of the statutory bodies of business corporations. The judgment is slightly older, but it makes the current regulation on so called “concurrence of functions” uncertain. We also inform you about the decision on proving of a breach of due diligence of statutory bodies. Finally, we mention the decision, which sets out conditions under which the parties to a contract parties may agree on an independent party, which, if necessary, determines the arbitrator for thein dispute arising from the contract.

Business Bulletin No. 2/2015

In this issue of the Business Bulletin we inform you about the amendment to the Public Procurement Act, effective as of March, which introduces a number of changes to the public contracts award procedure. We also refer to the amendment to the Court Fees Act, which should result in cheaper motions for registration of changes in the Commercial Register. In the ‘case-law’ section we focus particularly on a decision of the Constitutional Court on the compensation of costs of execution proceedings and litigation between collective administrators of copyrights and entrepreneurs. Finally, we take the liberty of informing you about translations of private law legislation, recently published by the Ministry of Justice.

Business Bulletin No. 1/2015

This issue is dedicated to the most interesting events from the relevant areas of law in the last quarter of 2014. In the section ‘Adopted Acts’ you can learn about amendments to the Value Added Tax Act or an amendment to the act on investment companies and investment funds. We also mention an act amending the regulation of the financial market, which, inter alia, reduces the limit for cash payments. In the section Legislation Under Discussion we bring your attention to an amendment to the Civil Procedural Code, which is to change the rules of enforcement of debts under CZK 50 000. In terms of case-law we mention an important decision of the Supreme Court, which specifies the formal requirements for powers of attorney issued for the foundation of a company, a judgment on arbitration clauses in consumer disputes and a decision of the Office for the Protection of Competition on indirect price fixing. At the end, we inform you about new a practice of the Registry Courts in the registration of corporate changes.

Business Bulletin No. 3/2014

Welcome to the third issue of Business Bulletin of 2014! You can find here a number of interesting pieces of news from the world of business law. Firstly, we inform you about an adopted amendment to the Trade Licensing Act (№ 455/1991 Sb.), enacted in order to reduce the administrative burden on entrepreneurs, as well as about an amendment to the Copyright Act (№ 121/2000 Sb.). Further, we provide you with information regarding preparations for the amendment to the Civil Code (№ 89/2012 Sb.), the purpose of which is to repair some of its major problems. In the Adopted Acts section you can find out more about the tightening of the criminal liability of legal entities which is about to occur as a result of the increase of crimes possibly committed by legal entities. In the case-law part you will learn about the extinction of the right of first refusal, shareholder’s right to information about the company and finally about concurrence of the functions of a manager and a Member of the Board of Directors.

Business Bulletin No. 2/2014

Welcome to the new issue of the Business Bulletin, in which we inform you about a couple of important pieces of news! In the Adopted Acts section we inform you about new EU directives in the area of public procurement, which are likely to result in the adoption of a new Public Procurement Act. In the section Legislation Under Discussion you will learn about the first amendment to the Civil Code, which is being prepared with the aim to remove the most serious problems related to the new code, the debated Act on the Register of Contracts, which should contain publicly available contracts concluded in the area of public procurement, and changes in the field of the execution of property belonging in the community property. In the case-law part you can find out more about the admissibility of a change of articles of association, execution on the basis of a notarial deed containing consent with direct enforcement and the obligation of a Board of Directors to give explanations about proposals on the distribution of a company’s profit. Finally, we advise you about the time-limit for making a decision on the granting of consent with entry into the Cadastral Register. 

Business Bulletin No. 1/2014

In the past year, the Business Bulletin was issued in the form of the Recodification Guide for Entrepreneurs. Now, we present you with our new standard issue which focuses on new legislation, legislation under discussion and case law in the field of commercial law and business which we selected for the first quarter of 2014. In the new Business Bulletin you will be informed about the technical amendment to the Public Procurement Act, the new Act governing Public Registers and new legislation relating to the transfer of real property. Also highlighted is the proposed amendment to the Trade Licensing Act which intends to reduce entrepreneurs’ administrative workload. With regards to case law we have selected a Supreme Court decision dealing with the liability for damages relating to public tenders and a decision in which the Supreme Court interpreted the term “in writing” according to the Vienna Convention.

Business Bulletin No. 1/2013

In the first issue of the Business Bulletin in this year we bring you news from business and commercial law, selected from the last quarter of 2012. We focus primarily on changes which became effective on January 1, 2013. We also briefly summarize amendments to the Civil Procedure Code, a complex amendment to the Building Act, new acts regulating the structure of financial and customs authorities and news in the area of procedural and real estate law. We also draw your attention to an amendment to the Commercial Code and a new Act on Public Registers which is to be adopted in connection with recodification of private law. In the Case Law section we briefly summarize a decision of the Supreme Court concerning the validity of a resolution of a general meeting and a decision of the Office for Protection of Competition concerning forbidden cartel agreements on market segmentation. For the News and Tips section we have selected new electronic applications of the Ministry of Justice which should make it easier to submit motions for changes with the Commercial Register and to obtain decisions with legal force and enforceability clause.

Business Bulletin No. 3/2012

In this 3rd issue of the Business Bulletin in this year we bring news from business and commercial law we have chosen from the 3rd quarter of this year. In the area of adopted laws we draw attention to an amendment to the Insolvency Act aiming to prevent abusive insolvency filings and a new Mediation Act which has become effective recently. Further we deal with a bill on new Cadastral Act which should become effective together with the new Civil Code and substantially change regulation of the Land Register. In the Case Law section we mention a decision in which the Office for Protection of Competition imposed sanctions for presenting a false affidavit on a tenderer and we give a short summary of a judgment of the Supreme Administrative Court relating to “švarcsystém” issue. Lastly we mention news which, hopefully, will simplify filling in form filings for entry of rights in the Land Register and widens a scale of information available to users of web interface of the Land Register.

Business Bulletin No. 2/2012

This 2nd issue of Business Bulletin includes selected news stories from business and commercial law from January-May 2012. Under Adopted Acts you are reminded of the amendment to the Public Procurement Act and recodification of private law. Under the section dedicated to regulations under discussions we pay attention to the controversial amendment to the Expropriation Act, amendment to the Civil Procedure Code which aims to change current regulations of recourse to the Supreme Court and the amendment to the Act on Protection of Competition, which introduces a so-called “Leniency program” into Czech law. Further, we have chosen interesting judgments of the Supreme Court relating to for example, the legal nature of contracts on leases of non-residential premises, rules for co-ownership of a business share and liability of members of statutory bodies for damage incurred in the course of the exercise of their office and passage of claim in case of sale of business. Finally, several tips are given related to the definition of independent entrepreneurship which can help entrepreneurs to avoid risks related with the so-called “švarcsystém”.

Business Bulletin No. 1/2012

In this issue we report on the most important legal news for the last quarter of 2011 and the beginning of the year 2012. We focus on an amendment to the Commercial Code, which enables a controversial concurrence of offices and expressly enables damage waivers. Also described are amendments to the Public Procurement Act, Act on Registration of Ownership Rights, a comprehensive amendment to the Act on Experts and Interpreters as well as an amendment to the Act on Transformations of Corporations which influences the wording of the Commercial Code. We also highlight the adoption of the Act on Criminal Liability of Corporations and an amendment to the Labor Code. In the section Regulations under Discussion we explain an amendment to the Trade Licensing Act. We also point out progress made in the adoption of a new codification of private law. In the Case-Law section we summarize a decision of the Office for Protection of Competition against building societies. Finally, we report on EU activities in the field of electronic payment systems.

Business Bulletin No. 3/2011

In this autumn issue of Business Bulletin, we highlight the most important legal news for the period of May-September 2011. In the Adopted Acts section is an article about an amendment to the Act on Court Fees that made court fees significantly more expensive and about an amendment to the Act on Information Systems of the Public Administration, which enables banks to provide services of CzechPOINT. In the area of upcoming legislation, we describe in this and upcoming issues a draft proposal of the new Civil Code and related Act on Business Corporations. We also sum up the most important points of an amendment to the Public Procurement Act. We also provide a summary of a Supreme Court decision relating to the liability of the state in the exercise of public powers and legal entity as a close person. We also address a decision of the Supreme Administrative Court confirming that it is not possible to transfer a duty imposed by public law to another person. In the Case Law section we describe a decision of the Office for Protection of Competition regarding the abuse of significant market power. Last but not least, we offer tips about the European E-Justice Portal, a website which provides information about EU and Member States’ laws, including links to national business, insolvency and land registers.

Business Bulletin No. 2/2011

In this special issue of Randls Business Bulletin, you will find information and tips regarding the upcoming Act on Criminal Liability of Corporations and on Proceedings against them. The new act provides conditions of criminal liability of corporations, punishments that can be imposed upon them and procedure of their prosecution. Unlike the current regulation, where corporations face no criminal liability at all, the Act on Criminal Liability of Corporations introduces substantial changes. Corporations must act in accordance with this act, as well as with the Criminal Code, otherwise they are criminally liable for their actions and criminal punishments may be imposed on them. The criminal punishment shall have impacts both on a person acting on behalf of a corporation and on the corporation itself. However, the acting persons may no longer “hide” behind the corporation and they will continue being individually liable. At the end of this special issue, a brief overview is given on models of criminal liability of corporations in other states and examples of situations when corporations can be held liable for their actions outside the Czech Republic.

Business Bulletin No. 1/2011

In this first Randls Business Bulletin issue of 2011, we report on news in business and commercial law for the period January 1, 2011 to March 31, 2011. Regarding adopted acts, we draw your attention to the new form for the application for the electronic payment order and amendment to the Civil Code relating to so-called time-sharing. We also focus on the upcoming amendments to the Commercial Code relating to the Commercial Register and liquidation and an amendment proposed in connection with enabling the concurrence of function of a statutory body and employment relationship. Although the aim of the amendment is to allow the concurrence, the current case law considers it impossible. Thus, you can find a decision of the Supreme Administrative Court confirming the impossibility of the concurrence of functions, while the invalidity of the employment relationship now has consequences in the field of health insurance. Furthermore, we report on a new decision of the Office for Protection of Competition relating to so-called Resale Price Maintenance. Last but not least, we examine public tenders, particularly a decision relating to the expected value of a tender. Finally, we give useful tips concerning eJustice.

Business Bulletin No. 4/2010

In the fourth issue of Randls Business Bulletin, we bring you a few legal news related to civil, business and competition law due to the Czech Government’s focus on lowering the state finance deficit in the period of the last quarter. We briefly mention the new Act on Financial Collateral, the Consumer Lending Act and changes of legal regulations occurred in connection with adoption of such acts. In the field of regulations under discussion we point out the significant proposal of the amendment to the Civil Code in flat lease relationships. Randls Business Bulletin also discusses important decisions of the Office for Protection of Competition in relation to so called “predatory pricing” and in relation to cartel agreements of CRT monitor producers. We looked at the interesting decision of the Supreme Court of the Czech Republic regarding the possibility of insurance company to refuse insurance benefit payment. And finally, we bring you information on national and foreign databases of trademarks available free of charge on the Internet.

Business Bulletin No. 3/2010

In the third issue of Randls Business Bulletin, we introduce you the essential information about the new system of basic registers of public administration. This system is intended to transform the method of collecting and storing data related to individuals, business corporations, government bodies, as well as information related to their rights and duties and regarding all immovables located in the Czech Republic. Randls Business Bulletin also looks at the most interesting decisions of the Courts and of the Office for the Protection of Competition, issued in July and August 2010. We discuss the first decision regarding “bid rigging”, as it relates to public procurement. In the field of consumer law we focus on a decision concerning prohibition of an arbitration clause in consumer contracts. Another pertinent issue concerns the repeal of a provision of the Insolvency Act, which is essential for exercising creditors’ rights. We briefly mention a key decision of the Supreme Administrative Court concerning penalties imposed by the Office for the Protection of Competition. Finally, we point out some of the available services offered by Czech POINT offices.

Business Bulletin No. 2/2010

In the second issue of Randls Business Bulletin we bring you an update of legal news related to doing business, business law and real estate law from the period between 1 April 2010 and 30 June 2010. In this issue we gather, in particular, information concerning an amendment to the Act on Public Contracts (Act on public procurement). This amendment is intended to eliminate insufficiencies in the Act’s practical application and should ensure compliance with acts of European Union and case law. Due to changes in the Czech Parliament and the formation of a new government this issue does not include our regular section covering newly proposed laws. We only briefly mention proposals related to constitutional law. We discuss a decision of the Supreme Court of the Czech Republic concerning rights of proxies and we also look at an interesting decision of the Supreme Administrative Court of the Czech Republic concerning the prohibition on the awarding of liquidating fines for administrative offences of entrepreneurs. Finally we would like to point out, particularly to small and medium-sized entrepreneurs, valuable information available on the European Union’s various Internet portals, such as the European Small Business Portal, the Market Access Database and the Your Europe portal.

Business Bulletin No. 1/2010

The first issue of Randls Business Bulletin is a regulate update of legal news chosen by the Randl Partners law firm related to doing business, business law and real estate law. We will generally issue Randls Business Bulletin every 3 months, always focusing on current news from legislation and case law.

First issue of Randls Business Bulletin covers legal news between 1 January and 31 March 2010; in particular we look at two amendments to acts affecting unfair competition and consumer law. We also discuss an amendment to the Act on Banks and a related increase in the amount of guaranteed compensation for deposits in banks which cannot fulfill their duties to the depositor. Another pertinent issue concerns the proposed acts on lobbying and on business corporations, which has yet to be passed. In the real estate sector we call your attention to an amendment to the Foreign Exchange Act and how it affects the possibility for foreigners to own real estate in the Czech Republic. Finally we look at a key decision of the Supreme Court of the Czech Republic, from the first quarter of 2010 which highlights the importance of registering in the Commercial Register all changes of persons acting on behalf of the company.