Reminder: The Business Corporations Act amendment requires employees participation in supervisory boards

Act No. 458/2016 Coll.
Effective from: 14 January 2017

Following the news of February 2017, the Business Corporations Act 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 amendment sets out a transitional period of 2 years from its effective date to comply with these changes in concerned joint-stock companies. This transitional period ended on 14 January 2019.