Archive – Corporate (2024)

Our October issue continues with another judgment (C 613/23 CJEU) examining the liability of members of a company’s executive body for its unpaid debts. Last month, we discussed the Supreme Court’s approach to the choice of forum when a foreign executive body member is sued.

As a judgment of the month of September (Case No. 27 Cdo 3032/2023) we present a landmark decision that sheds light on the international jurisdiction of courts in disputes involving the liability of an elected body member for a company’s debts. These disputes often arise when a member—frequently a f

In this post of our series on ESOP myths, we discuss the concerns about the safety of ESOPs for companies and their shareholders. It comes as no surprise that this, too, is merely a myth. ESOPs can encompass enforceable rules and additional mechanisms to ensure their proper functioning and enforceab

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

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

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.

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

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.

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

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

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

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

In the first part of the ESOP myths series, we focused on the myth that employee stock ownership plans (ESOPs) are too complex from the perspective of founders and shareholders. It is true that the ESOP issue is robust and complex and can feel overwhelming. Shareholders and managers may often believ

For March, we have selected as TOP corporate case-law judgment (case no. 27 Cdo 1766/2023) a ruling concerning the delegation of the authority of managing directors to convene and organise general meetings.

ESOPs are often fraught with various myths and ensuing concerns, which we have decided to debunk. In the first part of a new series from the world of employee stock ownership plans (ESOPs) with the subtitle “myths”, we will take a look at one of the most common ones. That myth involves the concern o

Each month since May 2020 on LinkedIn, we have introduced you to a judicial decision in corporate law, carefully selected from the Supreme Court’s extensive decision-making practice. We always summarise for you those Supreme Court decisions that have a significant impact on the business life of corp

We begin 2024 with a heavyweight corporate judgment – we have picked a ruling which addresses profit distribution in limited liability companies.