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Trends in European Business Law

In: Business and Management

Submitted By kleinballer08
Words 1076
Pages 5
Business Law Trends

With the move towards a market economy slowing taking over Europe, there has been a vast amount of changes in laws that effect businesses across Europe and in the Czech Republic in particular. Through my research, I have discovered a few trends in which I have found interesting. The first of those trends is the slow removal of anonymous corporate ownership in the Czech Republic. Before the end of last month, numerous companies throughout the Czech Republic had anonymous shares. This made it difficult to determine who had ownership in these said companies. Because of that, just recently a law was put in to place to prevent these thousands of companies from continuing to keep shares anonymous.
June 30th was the deadline for companies to make all corporate shares public, and if the anonymous shares are not removed then the companies themselves should disappear. Anonymous shareholders will also lose their rights within these companies such as voting at meetings and receiving dividends. The reasoning behind this is to create a more transparent corporate world in the Czech Republic. As well, this law will help towards ending corruption and criminal acts in the corporate world. Many of these companies have been viewed as a front for illegal activity. These companies have been pinpointed as the most likely companies to be involved in fraud, and the government has made it a point to attempt to block these companies from receiving subsidies, payments, and public contracts.
A resolution to all these issues won’t be found overnight however. As mentioned earlier, removing this anonymous corporate ownership will be a gradual process. On the eve of the law taking effect, there were still over 11,000 anonymous companies registered in the country. This total still makes up 44% of Czech stock companies. The Czech Chamber of Commerce expects this to be a

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