On October 22, 2019, the parliament adopted an amendment to the Commercial Code (Act No. 513/1991 Coll.), which brings several major changes coming into effect on October 1, 2020.  

We summarize the most important changes to the Commercial Code bellow:

Obligation to make an advance payment for liquidation of a company

Under the new legislation, the process of liquidation of business entities will be more regulated and formalized. One of the novelties will be, among other things, the obligation to pay a deposit to a notary’s trust account for liquidation, which can only be used to pay the liquidator’s remuneration and expenses.

Registration of limitations on powers of statutory body when acting on behalf of the company

The amendment also addresses registration of limitations on powers of a statutory body when acting on behalf of a company. Such registered limitations will be ineffective towards third parties, and a legal entity that has registered such limitations on powers of its statutory body in the Commercial Register will have to change such data by September 30, 2021.

Petitions to the Commercial Register in electronic form only

The amendment introduces the obligation to submit petitions for the entry, modification or deletion of data in the Commercial Register exclusively by electronic means. The aim of the exclusively digital form of the Commercial Register is to make the whole process of registration of data more effective and more transparent.