Amongst others (see Slovak News from January 1998), the latest amendment to the Commercial Code lists the relevant items in consideration of admissibility of non-monetary investments into share capital of commercial entities.

The amendment includes provisions on maturity, valuation and other conditions regarding non-monetary investments into the share capital of commercial entities. For example, the obligation to perform work or provide services are not considered as non-monetary investments.

Since the effective date, i.e. 1 February 1998, a competent court is authorised to cancel any business activities of a company.

For limited liability companies connected through common owners, the amendment introduces the concept of mutual guarantee.

Where the same person(s) are the only member(s) in more than one company, each of these companies must guarantee the obligations of each other.

In addition, the amendment makes changes to the reserve fund in limited liability companies. Thus, on its incorporation, the company must establish a reserve fund amounting to at least 5% of its registered capital. Contrary to the prior enactment, the amendment does not stipulate a minimum amount of the reserve fund and there is an obligation to increase the reserve fund annually by at least 5% of the annual net profit. The reserve fund must be deposited in a blocked account.

The information in this newsletter is correct to the best of our knowledge and belief at the time of going to press. Specific advice should be sought, however, before investment and other decisions are made.

For further information contact Mr Frank Walsh on +421 7 5340 545 Email directly on Click Contact Link