Changes to corporate transformations are expected
to come into force on 1 January 2012.
Legislative amendments have already received their third reading in
Parliament.
If they become law, they will apply to all types of domestic and
cross-border transformations including cross-border divisions and
registered office relocations between the Czech Republic and other
EU member states.
They would create an established framework for relocating companies
or some/all of their assets between the Czech Republic and another
EU member state. Although this is already possible under existing
laws, courts have little experience of it and their approach is not
yet settled.
Other proposed changes include:
- permitting companies to specify an accounting reference date in the future but no later than the date on which the transformation is registered in the Commercial Register. This would mean that the successor company's final accounts and opening balance sheet would not be available when the transformation is approved
- making it no longer necessary, where a division involves equal
exchange ratios, to draw up a report on division or interim
accounts (even if otherwise required).
Law: proposed changes to the Act on Transformations and the Commercial Code
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The original publication date for this article was 26/10/2011.