Amendment to the Czech business corporations act 2021 (Part I)

An amendment to the Czech Business Corporations Act will come into effect on 1 January 2021. This amendment will result in substantial changes to the duties and obligations of corporations and their bodies. This update, Part 1, relates to the impact on the position of members of executive bodies. Part II, which will be released separately, will cover the effects on companies and their shareholders.

The major changes introduced by the amendment in relation to the position of members of executive bodies of corporations relate in particular to remuneration, legal entities that are members of an executive body and the liability of members of executive bodies.