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.

Since the effectiveness of the new Civil Code this question belongs to often discussed topics. The general courts including the Supreme Court are the opinion that the simultaneous performance of functions is not admissible. The above mentioned decision of the Constitutional Court has brought a new point of view to this issue.

The Constitutional Court does not agree with the labour law argumentation of the general courts, because according to the Labour Code it is possible to subordinate the relationship between the business corporation and the member of the statutory body to the Labour Code. Regarding the commercial law justification, the Constitutional Court found it insufficient requiring “editing”.