Shareholders’ Power to Manage the Company’s Business in a Private Limited Company – the Case of Czechia in an International Context

Kód výsledku v IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F00216208%3A11220%2F25%3A10507183" target="_blank" >RIV/00216208:11220/25:10507183 - isvavai.cz</a>

Výsledek na webu

<a href="https://verso.is.cuni.cz/pub/verso.fpl?fname=obd_publikace_handle&handle=iFd8fiHF1g" target="_blank" >https://verso.is.cuni.cz/pub/verso.fpl?fname=obd_publikace_handle&handle=iFd8fiHF1g</a>

DOI - Digital Object Identifier

<a href="http://dx.doi.org/10.14712/23366478.2025.396" target="_blank" >10.14712/23366478.2025.396</a>

Jazyk výsledku

angličtina

Název v původním jazyce

Shareholders’ Power to Manage the Company’s Business in a Private Limited Company – the Case of Czechia in an International Context

Popis výsledku v původním jazyce

The legal regulation of the Czech limited liability company is distinctive in an international context. While many foreign jurisdictions, to varying degrees, allow shareholders to influence the business management of the company through the general meeting and, for this purpose, to instruct the director (or even decide on a particular matter themselves), Czech company law, as a general rule, explicitly prohibits such a procedure, except where expressly permitted by law. According to established case law, no contrary conclusion may be drawn, even in view of the differing nature of a limited liability company as opposed to a joint stock company. However, Czech case law and legal doctrine regrettably fail to explore the underlying rationale and objectives of this prohibition in depth.A comparison with the legal framework governing limited liability companies in Germany, Austria, Slovakia, the United Kingdom, Canada, and Australia suggests that shareholders&apos; intervention in the business management of a limited liability company can be functional, provided that the protection of minority shareholders and creditors remains unaffected and appropriate regard is paid to the director&apos;s liability towards the company. Even these issues, however, can be adequately addressed within the existing framework of Czech legal scholarship.

Název v anglickém jazyce

Shareholders’ Power to Manage the Company’s Business in a Private Limited Company – the Case of Czechia in an International Context

Popis výsledku anglicky

The legal regulation of the Czech limited liability company is distinctive in an international context. While many foreign jurisdictions, to varying degrees, allow shareholders to influence the business management of the company through the general meeting and, for this purpose, to instruct the director (or even decide on a particular matter themselves), Czech company law, as a general rule, explicitly prohibits such a procedure, except where expressly permitted by law. According to established case law, no contrary conclusion may be drawn, even in view of the differing nature of a limited liability company as opposed to a joint stock company. However, Czech case law and legal doctrine regrettably fail to explore the underlying rationale and objectives of this prohibition in depth.A comparison with the legal framework governing limited liability companies in Germany, Austria, Slovakia, the United Kingdom, Canada, and Australia suggests that shareholders&apos; intervention in the business management of a limited liability company can be functional, provided that the protection of minority shareholders and creditors remains unaffected and appropriate regard is paid to the director&apos;s liability towards the company. Even these issues, however, can be adequately addressed within the existing framework of Czech legal scholarship.

Druh

J_SC - Článek v periodiku v databázi SCOPUS

CEP obor

—

OECD FORD obor

50501 - Law

Projekt

—

Návaznosti

I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace

Rok uplatnění

2025

Kód důvěrnosti údajů

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Název periodika

Acta Universitatis Carolinae. Iuridica

ISSN

0323-0619

e-ISSN

2336-6478

Svazek periodika

71

Číslo periodika v rámci svazku

2

Stát vydavatele periodika

CZ - Česká republika

Počet stran výsledku

15

Strana od-do

153-167

Kód UT WoS článku

—

EID výsledku v databázi Scopus

2-s2.0-105007575228