Important temporary changes to corporate law regulations due to LEX COVID

Author: Mgr. Martin Murad, Mgr. Jan Novotný, LL.M.

The newly adopted Act on Measures to Mitigate the Effects of the SARS CoV-2 Coronavirus Epidemic (known as Lex Covid) has introduced some important changes to Czech corporate regulation. What follows is a bullet point summary of those changes:

• Corporate organs of a legal entity such as the general meeting, the board of directors or the supervisory board may make decisions outside their regular meetings in writing or by technical means, even if the bylaws of the relevant company do not allow this.
• If the term of office of a member of an elected body of a legal entity expires, such term of office shall be extended until 3 months have elapsed from the day following the date of termination of the epidemic emergency measures. This also applies if the term of office expires within 1 month of the day following the date of expiry of the epidemic emergency measures. The term of office shall not be extended if the member of the elected body notifies the legal person that he/she disagrees with the extension.
• Should the statutory deadline for discussing the regular financial statements of a limited liability company, joint-stock company or cooperative be reached earlier than 3 months after the end of the epidemic emergency measures, the deadline will be pushed back to 3 months after the end of the measures, but occur no later than on 31 December 2020.

Important legal news impacting health care regulation in the Czech Republic Foreign investment protection during COVID-19