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The Amendment also introduces several changes in regulation of mergers, amalgamations and divisions of joint stock companies.
Similarly to amendments introduced in cases of limited liability companies and joint stock companies, responsibility of members of the BoD of co-operatives have been also amended.
Two contracts regulated by the Commercial Code have been modified by the Amendment, in particular the agreement on business representation and the agreement on silent partnership.
Under the amended regulation of the agreement on business representation, the business representative in clearly defined as an entrepreneur. Terms of termination of the agreement on business representation have been significantly changed as well as rules for determination of a severance pay. New Section 672a of the Amendment introduces a ''ban of competition clause`` that provides for a possibility to agree in writing a limitation of activities of the business representative for maximum of two years after the termination of the agreement on business representation.
In respect of the agreement on silent participation, new wording of Section 675 of the Amendment specifies wider controlling powers of the silent participant in a company as well as specific regulation of their execution.
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