Czech LEX COVID - prolongation in the field of corporate law to 30.06.2021

07.01.2021

The Act on Certain Measures to Mitigate the Impact of the Coronavirus Epidemic (the so-called LEX COVID) in the field of justice and corporates entered in the Czech Republic in force on 24 April 2020. One of the issues to be regulated was how to convene general meetings in accordance with the restrictive measures and how to take key decisions.

Even prior to the first lockdown in spring 2020, it was possible for general meetings and statutory or supervisory bodies of companies to adopt decisions remotely. As some companies do not have the possibility of remote decision-making for their corporate bodies stipulated in their deeds of incorporation / articles of association, and therefore, they could be paralysed, LEX COVID enabled corporate bodies to use per rollam decision-making or decision-making via appropriate technical means (such as video conferences and other means of distance communication) even if it is not permitted by the deeds of incorporation / articles of association. 

This benefit given by LEX COVID is aimed temporarily - originally only within duration of the emergency measures taken by the public authorities in the COVID-19 pandemic, due to which it is impossible or excessively difficult for corporate bodies to meet, but no longer than up to 31 December 2020. Now, the enacted prolongation is up to 30 June 2021 and shall apply regardless the duration of the emergency measures taken by the public authorities in the COVID-19 pandemic.