Expelling of a Member of a Cooperative for Breaching of Membership Obligations

28.04.2015

According to the Commercial Code and also according to the new Civil Code, which replaced the Commercial Code with effect as of 1st January 2014, a member of the cooperative may be expelled by the board of directors if he/she repeatedly breaches membership obligations (for example the obligation to pay the rent and associated costs). The member must be informed about the decision of the board of directors by a written notice.  

The Supreme Court of the Czech Republic has recently stated (decision as of 22nd October 2014, Reference Number 29 Cdo 1155/2013) that the written notification must at least contain: the identification of the expelled member, statement on expelling, specification of the breached duty and information about the possibility to file an appeal against the decision of the board of directors. If the member was expelled for not paying the rent or associated costs, the reason of the debt and its amount and also the period of the origination of the debt must also be specified in the notification.