Recodification Guide for Entrepreneurs No. 5

If founders want to incorporate a large business company with enough capital or if they do not want to disclose its shareholder structure (to avoid registration of their names in the Commercial Register), they usually choose a joint-stock company. This form of business corporation is not, unlike in the USA, Great Britain of Germany (where there are much larger stock markets) as common in the Czech Republic. Czech entrepreneurs mostly prefer limited liability companies. Nevertheless, there are about 25 000 joint-stock companies. The recodification aims to make the legal framework more flexible and efficient and to make the joint-stock company a more modern and popular form of entrepreneurship as it is in the above-mentioned countries. In this issue of the Recodification Guide key changes in the regulation of joint-stock companies are outlined: both the inevitable changes (new obligations and bans) and the optional changes that can help the functioning of a joint-stock company to adapt to the needs of their founders / shareholders.

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