On January 14, 2017, an amendment to Act No. 90/2012 Coll., on Commercial Companies and Cooperatives took effect. This change concerns the election of the supervisory board members of joint stock companies with more than 500 employees.

Under the amendment, one third of the members of these companies’ supervisory boards must be elected by company employees. The company’s statutes may set an even higher number of supervisory board members whom the employees must elect provided that this figure does not exceed the number of supervisory board members to be elected by the General Meeting.

Joint stock companies affected by the change must modify their internal structure by January 14, 2019. If they fail to do so, the registration court will call on them to make these changes and provide additional reasonable time in which to fulfil their duty. Otherwise, the court may dissolve these companies without request and order their liquidation.

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