Havel & Partners has advised Sebre, Havel & Partners' Managing Partner Jaroslav Havel, and Sebre Managing Director Jan Kubicek, on the joint acquisition of a 50% shareholding in SousedeCZ, a company operating an online platform for digital communication of homeowner associations in residential buildings, from entrepreneurs Tomas Holomoucky and Tomas Sikora.
Noerr has advised facility services provider ISS on the divestment of its main subsidiaries in the Czech Republic, Slovakia, Romania, and Hungary to Hungarian facility management company B+N Referencia Zrt. Havel & Partners advised B+N Referencia on the transaction, which remains contingent on regulatory approval.
New Act No. 37/2021 Sb. on the Register of Beneficial Owners (“ARBO”) will enter into force on 1 June 2021 in the Czech Republic. In contrast to the current legislation, the ARBO introduces significant sanctions for a breach of the obligations it imposes, including fines up to CZK 500,000 or invalidation of voting rights and the right to dividends.
In the Czech Republic, persons who undergo Covid-19 vaccination have been given the opportunity to claim financial compensation from the state if the vaccination (or, more precisely, the medicinal product containing a vaccine) causes harm. The Czech Parliament adopted Act No. 569/2020 Sb., on the Distribution of Medicinal Products Containing a Vaccine for Covid-19 Vaccination and on Compensation for Harm Caused to Those Vaccinated by These Medicinal Products (“Act No. 569/2020 Sb.”), which allows such compensation. According to the explanatory memorandum, this measure aims to “facilitate compensation of those who get vaccinated if they are harmed by the vaccination, thereby also indirectly promoting interest in Covid-19 vaccination.”
The most notable recent political event in the Czech Republic was the October 2020 regional election, says Jaroslav Havel, Managing Partner at Havel & Partners. However, Havel is quick to point out that, no matter who has been in office in the last ten years, politicians have not had a major impact on business in the Czech Republic. A more tangible effect of the election, he says, is that his former partner, Jan Holasek, who left the former Havel & Holasek law firm six years ago, has become a member of the Czech Senate.
A new regulation sets up a system for controlling investments from outside the EU in strategic assets relevant to the security and internal order of the Czech Republic. From 1 April 2021, certain foreign investments in Czech assets (including private) will thus be subject to prior approval by the Ministry of Industry and Trade. The ministry will also be entitled to review any foreign investment up to five years after its completion. The Act defines a wide variety of entries into the target as foreign investment (not only asset ownership but also, for example, membership of a body). There is no experience with investment approval procedures yet, but failure to notify can lead to enormous fines (up to 1% of turnover). Comprehensive preparation of the required documents and information and legal representation in negotiations with the Ministry of Industry and Trade are therefore highly recommended.
On 1 January 2021, the new Act No. 254/2019 Sb., on Experts, Expert Offices and Expert Institutes (the Act on Experts), entered into force, replacing Act No. 36/1967 Sb., on Experts and Interpreters. This is undoubtedly the most significant change in this area in the last 30 years. Below is a selection of the most important changes:
A fundamental change brought about with effect from 1 January 2021 by a major amendment to the Commercial Corporations Act was the long-awaited new setting of the monistic system of the joint stock company’s internal structure. We bring you an overview of the most significant changes and practical complications that arise in current practice.