Electronical evidence of sales

On 1 December, a new Act No. 112/2016 Coll., concerning the evidence of sales, entered into force. This law introduces a new obligation for those entrepreneurs who accept payments in cash. They should electronically report these payments to the Ministry of Finance. The purpose of the law is to prevent fraud.

Transfer of Rights and Obligations from Labour Relations to the New Lessee

The Supreme Court of the Czech Republic has recently dealt with a question of the transfer of rights and obligations from labour-law relations in connection with the termination of a lease of the premises designed for business (commercial premises).

Employees in supervisory boards

On 9 November 2016, the Chamber of Deputies adopted the first amendment to the Law on Trade Corporations. However, the Senate and the President's signature are still required to adopt the amendment.

Amendment of the Civil Code

More than one year ago we informed you about the planned amendment of the Civil Code.

As of 26 October 2016 the Chamber of Deputies adopted the amendment of the Civil Code, i.e. in case the amendment will be adopted also by the Senate and will be signed by the president, it will be the first change (amendment) of the Civil Code.

Auction among co-owners

The Supreme Court, in the case No. 22 Cdo 2208/2015, stated at the outset that it is inadmissible to auction a thing among the co-owners when the co-ownership is cancaled, but there are conditions for the assignment to one of the co-owners.

Increase of Minimal Wage since 1st January 2017

The Government of the Czech Republic has enacted a regulation that changes the regulation No. 567/2006 Coll., on the minimum wage.

Form of contracts concerning shares in a limited liability company

In contrast to the Commercial Code cancelled in 2014 the recent Czech legal system doesn’t include an explicit arrangement for the legal form of contracts concerning the transfer of a share in a limited liability company.

Statement of the Constitutional Court to the simultaneous performance of functions in commercial corporations

The Constitutional Court of the Czech Republic has recently issued a decision (decision of September 13^th, 2016, Reference Number I. ÚS 190/15), in which it stated its opinion to the question of admissibility/inadmissibility of the simultaneous performance of functions in commercial corporations, i.e. if the member of the statutory body of the business corporation is allowed to exercise the activity that belongs to the statutory body, in labor law relationship.

Law concerning evidence of income’s origin

There was announced a new law No. 321/2016, which is coming into effect 01.12.2016.

The law is introducing new authorities to tax offices. They are allowed to request evidence concerning the origin of income and can demand additional taxes.

Adaption of articles of association of an association of unit owners

There is no doubt that the association of unit owners shall, within three years from the effective date of the Civil Code, amend its articles of association so they are in accordance with this Act. But up to now there has not been a unity regarding the form, in which the articles of association should be amended, i.e. if a form of a notarial deed is required.