Amendment to Commercial Code

Act No. 426/2002 Coll., amending and supplementing the Act No. 513/1991 Coll., the Commercial Code, as amended

The aim of this amendment is to prevent frequent speculative divisions of companies and financial transfers from one company to another with the aim to evade fulfilment of obligations of the dissolved company.

Under the amendment, all succeeding companies jointly and severally guarantee the fulfilment of obligations of the dissolved company, transferred to other succeeding companies. A creditor may request fulfilment of obligation from any of the succeeding companies and by complete fulfilment by one of the succeeding companies the obligation of the other companies ceases to exist.

In case of divisions of companies commenced and not completed before effectiveness of the amendment, the succeeding companies guarantee the dissolved company's obligations in accordance with this new regulation.

This Act became effective from 1 September 2002.