From 1 August 2012, energy companies must obtain shareholder
approval for their price proposals, including changes and
supplements, before submitting them to the Office for Regulation of
Network Industries for approval.
Under this change to the Commercial Code, power of approval may
also be delegated to the company's statutory body, by a
two-thirds qualified majority vote of all shareholders. This is an
improvement on the laws in force between 2008 and 2011 and which
did not allow competencies to be delegated by shareholders to the
company's executive body.
The change applies to all companies and cooperatives whose prices
are regulated under the Act on Regulation in Network Industries
(Act no. 276/2001 Coll. as amended). It will mainly affect
privatised energy companies in which the State retains a
shareholding, and those companies whose shares are held in too
diverse ownership to enable delegation of powers to the
executive.
Law: Act no. 197/2012 Coll. amending the Commercial
Code
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The original publication date for this article was 02/08/2012.