The Amendment to the Civil Code cancel Sections regarding public benefit status

The New Civil Code provides for the public benefit status in five Sections, i.e. Sections 146 to 150. Under these Sections, such status of a publicly beneficial legal entity belongs to an entity which, through its mission, founding actions and activities, contributes to achievement of the common good. Provided that the respective conditions are met, such entities are entitled to be registered in the public register. Revocation of the status is decided by the court.

These Sections of the Civil Code presumed that they would be supplemented with a special Act on the Public Benefit Status. This subsequent legal regulation hasn’t been adopted (the reasons usually mentioned are: the risk of overloaded courts, lack of necessity of a special act, e.g. no tax benefits connected to the act etc.). Instead, respective Sections are now to be removed from the Civil Code. However, removal of these Sections doesn’t result in cancellation of the public benefit, it results only in removal of the public benefit status. On the other hand, the public benefit status should be supplemented with the Act on Social Business which is currently being prepared.

Act no. 303/2017 Coll., amending several Acts in connection with public benefit status
With effect from: 1 January 2018