Czech Republic: Important legal changes for companies
Czech Republic: Important legal changes for companies

in short As of July 19, 2024, companies operating in the Czech Republic face significant changes in their legal obligations when undergoing mergers, spin-offs and other transformations. new legislation1 Comply with EU directives on cross-border conversions, mergers and demergers. The aim is to simplify the transformation process and reduce administrative costs and bureaucratic burden. content new transformational form Relocation to a third country Creditor Protection Modifications Simplify expert appointment Other changes A newly implemented "demerger" separates part of the assets and liabilities of the demerger company into one or more companies that are or will become (as a result of the demerger) its direct subsidiaries. A demerger allows for a spin-off into (a) one or more newly formed companies that will be wholly owned by the spin-off company, or (b) one or more existing companies in exchange for the acquisition of shares in those companies by the spin-off company. separate companies. The new form can serve as an effective tool…