Practical implications of the Supreme Court’s decision on determining the scope of business

Corporate law has been shaken up by Supreme Court Decision No. 27 Cdo 3549/2020 on the nullity of a corporation’s founding acts stipulating “production, trade and services not specified in Appendices 1 to 3 of the Trade Licensing Act” as its scope…

SC further tightens conditions for withdrawal from non-compete clause

The recent Supreme Court (SC) judgement marks a further tightening of conditions for employers who decide to withdraw from a non-compete clause negotiated with their employee. According to the judgment, arrangements that give the employer the option…

Supreme Court: same wage for same work in Prague and elsewhere

The Supreme Court (SC) ruled that a driver working in the regional town of Olomouc is entitled to the same wage as a driver working for the same employer and at the same position in Prague. According to the SC, external social and economic…

How to time resignation to comply with due managerial care

According to the Supreme Court (SC), members of a corporation’s elected body may resign from their offices and the corporation cannot stop them. However, if they do so at a time unsuitable for the corporation, they shall be liable for the damage…

SC on breach of work duties by bank employee

The Supreme Court (SC) confirmed the validity of an immediate termination of employment of a bank employee working as a cashier. Entirely in line with its previous case law, it confirmed that duty breaches by bank employees must be viewed more…

Not keeping track of the other statutory representative? You are jointly liable for any damage they cause!

The Supreme Court (SC) is sending a warning to statutory representatives in limited liability companies: if you do not monitor your colleagues, you are in breach of the fiduciary duty / due managerial care, therefore co-liable for damage that would…