Cross border mergers of business companies
Cross border mergers of business companies
The Act on Conversions of Business Companies and Cooperatives has just been signed by the Czech President. The new Act will replace the existing provisions of the Commercial Code. The Act becomes effective as of 1 July 2008, the mergers that have started before the end of June 2008 will still proceed according to the existing legal regulation.
The new Act to be in force from 1 July 2008 onwards will allow for the so called cross border mergers between companies with the same or similar legal form, if also the legal regulations applying to the foreign company allow so. The cross border merger means that one of the companies involved in the merger is a Czech business company, the others are from other countries in the EU or in the European Economic Area.