Amendment of the Act on Business Corporations

Act no. 458/2016 Coll.
With effect from: 14 January 2017

The amendment changes regulation of the joint-stock companies with more than 500 employees.

In such joint-stock companies it is newly necessary to determine the number of the Supervisory Board members so that it is divisible by three. Two thirds of the Supervisory Board members should be elected by the General Meeting whereas the remaining third should be elected by the company’s employees. The Bylaws may specify a higher number of the Supervisory Board members elected by employees, however such number may not be higher than the number of members elected by the General Meeting.

The Bylaws may also state that some of the Supervisory Board members shall be elected by employees even in companies with less than 500 employees.

The joint-stock companies have two years to amend their Bylaws to fully comply with the new legislation. (open the official wording).