On 7 May, the Chamber of Deputies insisted on the Bill on Transparency of Joint Stock Companies (zákon o transparentnosti akciových společností). The Bill had been rejected by the Senate at its meeting on 20 March. The Senate proposed amendments to the Bill, stipulating rather stricter proposition (any joint stock company in the Czech Republic should have the transparent ownership structure of registered shares, see here). The Chamber of Deputies refused to incorporate the Senate’s amendment into the Bill and insisted on its previous version.
Therefore, the Bill stipulates that owners of shares should register them before 30 June, 2014. Any joint stock company emerging after 1 January, 204 should have only registered shares structure.
The Bill is heading to the president who should promulgate the Bill. The Bill should come into force in 30 days after being promulgated.
For further information, click here.
The Chamber of Deputies also discussed a private member’s Bill on export insurance and financing state subsidy (zákon o pojišťování a financování vývozu se státní podporou). The Bill amends some provisions of the current Act in terms of contracting export insurance.
The export insurance credit rate under which banks lend insurance money to exporters derives from the current state of inter-bank loan rate (EURIBOR, LIBOR). However, insurance contracts are usually based on the fix credit rate. Therefore, the difference between the contracted rate and the factual rate may harm the providing bank. The amendments stipulate the possibility to compensate the difference that is incurred by credit rate movements. The amendment, therefore, regulates principles under which the Ministry of Finance may compensate the differences to private banks. Furthermore, the Bill stipulates supervision of the Ministry that is allowed to withdraw any contracts from the system of compensated export insurance contracts.
The aim of the Bill is to provide further export subsidy to increase the Czech foreign trade. The Ministry of Finance should provide each year a compensational sum of money of 100 mil of CZK.
The Committee on Budget has proposed amendments to the Bill. The amendment states that the Export Guarantee and Insurance Corporation (EGAP) should act on behalf of the Ministry of Finance in conducting compensation activities and supervision.
For further information, click here (explanatory report).