Corporate
We close the 2024 digest with a notable decision by the Supreme Court (Case No. 27 Cdo 1246/2024), addressing the approval of remuneration for a member of a governing body. The case addressed a service agreement (including remuneration) of a managing director – at the same time the majority sharehol
H&P corporate case-law judgment: Effects of a unilateral juridical act delivered by email (August 2024)
The August issue of our series examines a recent decision (Case No. 27 Cdo 3499/2023) that addresses the effect of serving legal documents. The Supreme Court’s decision clarified the effectiveness of unilateral juridical acts delivered by e-mail, based on a notice of a failure to elect the chairman
ESOP Myths | Myth #6: An ESOP is too expensive
The sixth issue of ESOP Myths will address and dispel the misconception that ESOPs are extremely expensive. The belief is merely a myth. Some ESOP structures can be costly and complex to establish and implement, but certain solutions exist that have relatively low time and financial requirements. It
H&P corporate case-law judgment: Division of a share by consent judgment (dissolution of co-ownership) (July 2024)
This time we shall take a closer look at an interesting decision on a purely corporate matter, the handling of a company share. The judgment, case no. 27 Cdo 2853/2023, was issued by the Czech Supreme Court at the beginning of July.
ESOP Myths | Myth #5: ESOPs do not protect founders and the company from executive departures
Continuing our series of myths about ESOPs, we look at the widespread concern that ESOPs will not protect company founders from sudden executive departures. From our experience, we know that this is in fact yet another myth. ESOPs are a good tool to ensure long-term cooperation and to keep managers
H&P corporate case-law judgment: Shareholder’s right to have their shares redeemed (June 2024)
For June, after a short pause, we are returning to the right of a shareholder to seek redemption of their share by the controlling person, addressed in judgment case no. 27 Cdo 1605/2023.
ESOP Myths | Myth #4: ESOP is not a tool to ensure a company’s long-term viability
This issue of ESOP Myths aims to dispel the myth that an ESOP cannot ensure a company’s long-term viability and success after the founder's departure. It’s quite the opposite. An ESOP is a key tool for ensuring a business can continue operating even after its original founder retires or shifts focus
H&P corporate case-law judgment: Interpretation of constituting acts (May 2024)
In May, the Czech Supreme Court published a decision (Case No. 27 Cdo 2235/2023) with content relevant to corporate practice. The decision addressed the interpretation of the content of a company’s constituting acts. The case involved a dispute between shareholders over the voting quorum required fo
ESOP myths | Myth #3: ESOPs from the incorporator’s perspective – are they really intricate, and will they cause you to lose control?
Incorporators, like anyone else, may perceive ESOPs to be overwhelming, complicated, and intricate, even though this need not be the case. At the same time, more than anyone else, incorporators may be concerned about giving up part of their business to managers and about the perceived loss of contro
H&P corporate case-law judgment: Imminent insolvency and executive directors (April 2024)
With the April judgment (case No. 27 Cdo 3019/2023) we will visit the insolvency sphere, but with sufficient overlap into the concept of due care of a prudent manager, as befits a TOP corporate case-law judgment of the month. The Supreme Court dealt with a case in which it considered whether the exe
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