On 19 June 2024, an amendment to the Act No. 125/2008 Coll., on Transformations of Business Corporations and Cooperatives and other related acts ("Transformations Act") was published in the Collection of Laws under No. 162/2024 Coll. Among other things, the amendment introduces a simplified information obligation for persons involved in the transformation.
First of all, the current obligation to publish a notice on the filing of the transformation project in the collection of deeds of the Commercial Register and a notice to creditors on their rights under the Transformations Act in the Commercial Gazette is cancelled. However, the obligation to file the transformation project in the collection of deeds of the Commercial Register at least 1 month before the date of approval of the transformation remains in place. Along with the transformation project, a notice to creditors, employee representatives, employees, shareholders and members of their rights under the Transformations Act will also be filed in the Commercial Register. In addition, the notice to creditors, employee representatives, employees, shareholders and members of their rights may also be published on the website of the respective person involved in the transformation. In the case of a cross-border transformation, the Czech legal entity involved in the cross-border transformation shall publish on its website or by other electronic means a notice of the cross-border transformation addressed to the shareholders, employee representatives or employees, as the case may be, at least 6 weeks before the scheduled date of the general meeting or members' meeting, which approves the transformation.
The above changes are intended to reduce the administrative and financial burden of transformation. The new legislation will become effective on the thirtieth day after its publication in the Collection of Laws, i.e. on 19 July 2024.
