At the end of 2022, an amendment to Act No. 90/2012 Coll., on Business Companies and Cooperatives (Act on Business Corporations) was published in the Collection of Laws, which, among other things, changed the conditions for the performance of the functions of members of elected bodies, with effect from 1 July .7. In what way? We will briefly introduce this in this article.

Conditions for performing the function of a member of an elected body

Until 1 July 7, Section 2023(46) of the Act on Business Corporations referred to Act No. 1/455 Coll. integrity and the absence of obstacles to running a business according to the Trade Act.

After the amendment, however, these conditions are regulated directly in the Law on Business Corporations, as follows:

• the absence of a ban on the performance of the function of a member of a managing, controlling or administrative body imposed by a decision of a public authority,
• the absence of a ban on the performance of activities imposed by a decision of a public authority and related to the business of a business corporation in which the person acts as a member of an elected body,
• non-existence of final conviction for exhaustively defined criminal acts and
• the absence of a decision to declare bankruptcy on the property of a person who is to become a member of an elected body.

Information obligation of a member of an elected body

The aforementioned amendment also enshrined in the Act on Business Corporations in connection with the already existing information obligations of members of elected bodies regarding

• insolvency proceedings conducted on the property of a person who is to become a member of an elected body or a business corporation in which this person was or is acting as a member of an elected body, and
• the existence of an obstacle to the performance of this person's function

new information obligation regarding

• the existence of facts that could reasonably lead to the emergence of an obstacle to the performance of the function of such a person.

Records of excluded persons

In addition to the above, the amendment also established a registry of excluded persons, in which persons who are prevented from performing their duties are registered. The record is not public, however courts and notaries have access to it, and the information contained in it will also be made available to anyone who requests it via an electronic form.

Source: Leagle.one

JUDr. Lucia Slobodová, Attorney

Mgr. Barbora Valentová, paralegal