30th May 2012

Government approves higher transparency of joint-stock companies

At its meeting on 30 May, the Government passed a proposal of a Bill on Joint-stock Companies Transparency (zákon o zvýšení transparentnosti akciových společností). The Bill has been proposed by the Ministry of Justice in accordance with the coalition agreement among the governmental political parties. The aim of the Bill is to regulate an anonymous ownership structure of joint-stock companies. The Government’s intention aims at limiting the so-called roll-shares of an owner. The intention primarily focuses on eliminating any possible non-transparency of the ownership structure; any exchanges of the mentioned roll-shares of an owner are rather nonpublic. The Bill stipulates a duty of any owners to record their roll-shares into a register kept by the Central Depository (to be set up) or by a Bank. The Government expects two possible ways of regulation: a public legal regulation for precisely stipulated branches, or a comprehensive regulation that would mean a complete diminishing of roll-shares of an owner. The Bill also aims at a clear ownership structure of companies that compete for public contracts to enhance efficiency and transparency of public expenditure. 
The Bill is heading to the Chamber of Deputies. The Ministry of Justice should consolidate the Bill, specifying the level of regulation.

For further information regarding the Bill, click here (explanatory report).

Members of the American Chamber of Commerce in the Czech Republic