6th March 2015

Robert Pelikan and new insolvency law - ambitious task going forward

New Minister of Justice Robert Pelikán proclaims that new strategy towards insolvency proceedings is the priority task in his sector. “The major weakness of the law is in the people who are involved”, he mentions. He pledges that the Ministry of Justice will make considerable efforts to improve the cooperation with the Ministry of Interior, the Police and Public prosecutors´ office and create a new team that would be able to effectively identify crime in this area and find evidence on people who continue to make a living out of frauds.

Solving insolvency proceedings is a complicated issue that requires specific knowledge of commercial law and business affairs that the police and inexperienced prosecutors do not always possess. It is alarming that there are problems on so many levels, which the new ambitious minister however promises to deal with. For example, insolvency administrators are establishing new fictitious offices to get more cases and more remuneration; companies are filing bullying petitions to harm their competitors and exclude them from bidding for a public contracts; firms are changing their addresses on purpose just before the petition is filed; or certain companies go to a particular court where they have “good contacts”.

Read more about the issue of insolvency and Robert Pelikán click here and here

Members of the American Chamber of Commerce in the Czech Republic