Corporate disputes

Corporate law is a very broad term. And disputes associated with it can arise in a variety of situations. As a rule, however, these are disagreements between the people who founded the company together — and whose opinions later diverge.Such a situation is unpleasant, since the partners then have to concentrate on each other's legal battles instead of doing business.

In order to continue to devote your time to business, it is better to leave these unpleasant (and often legally complicated) matters to a lawyer. And what is most often solved in this case?

One of the frequent cases is assessment of the validity of the general meeting. At the general meeting, the shareholders decide on the most important matters of the company. Individual decisions are put to a vote. And the overrated companion is not always satisfied with the result. In this case, they must immediately submit the so-called protest and follow it up with a lawsuit. Everything must be filed on time and carefully justified. Preferably with reference to the decision of the Supreme Court, which by its decisions governs the procedure of the lower courts.

Another common problem is the so-called Right to information. In fact, the shareholder has the right, both at the general meeting and outside it, to request information about the company, to consult its documents of the company and to check the data contained in the documents submitted. I mean, maybe ask for a review of all contracts over the last timethrough which the company sold or bought its properties. Or contracts that involved a particular value. It is thus a powerful means for each of the partners to have an adequate overview of the company, even if they do not participate in its daily activities and decision-making. Sometimes a request for information is used as a means of protecting the rights of a shareholder, other times a request for information is abused as a tool of pressure against the company or another (usually majority) partner. When the company does not comply with the request, the court again decides. And here, too, there are a number of decisions where the Supreme Court has considered which information should be released and which no longer. This boundary is good to know — or at least estimate, because it is not always completely clear.

In the event that information reaches the partner (either by the described request or in another way), it is necessary to assess it - whether everything that happened or is happening in the company is in accordance with the law. Thus, execute legal audit. Such activity has its place, in particular, if one of the partners suspects that the other partner, or another person, has harmed the company. A typical situation occurs when the former management of the company leaves (or is dismissed) and the new management finds out in what condition the company was handed over to him.

The investigation described then often results in conclusions that the former management committed an illegal act that caused harm to the company — for which the relevant persons are then responsible. It may be about unprofitable sale or purchase of property, unreasonable rewards, suspicious transactions with no economic sense and many other variations on the export of assets. Was the damage done? In what amount? Who specifically is responsible for it? Isn't everything already out of date? Would it be better to file a lawsuit, or a straight criminal notice? Or maybe both at the same time? All of this (and more) needs to be considered before any concrete steps are taken.

Compensation can be requested from other persons as well. Typically, they are members of the supervisory board if they have been established by the company. The damage may not only be caused by the person acting on behalf of the company (for example, in the case of an LLC), but also by the person who is supposed to supervise it. Even neglect of such supervision may result in liability for damage.

Membership in the body of a company (and in general of any legal entity — that is, for example, associations and other, even non-business legal entities) brings with it a whole range of obligations. If a person is elected, appointed or otherwise called to such a body, he must perform this function with the necessary loyalty and with the necessary knowledge and diligence. Whether this is the care of a proper housekeeper Able, everyone must evaluate themselves after their admission to the post. If he is not capable of such care, he risks liability for damage caused by not being “enough” to do his job.

This is even more pronounced in the case of commercial corporations. Typically in a limited liability company. Here in accordance with the law, he acts carefully and with the necessary knowledge, who could reasonably have assumed, in good faith, that he was acting in an informed manner and in the defensible interest of the business corporation. Of course, there are also exceptions to this rule and provisions that complement it.

Damages are far from the only sanction a member of the authority may face. In the event that a member of the statutory body of a business corporation (i.e., for example, an executive) repeatedly or seriously violates his duties, the court may exclude from serving as a member of the statutory body of any commercial corporation for up to three years. In the case of exercising the function of a member of a statutory body despite the established prohibition, such a person is threatened with expulsion from office for up to 10 years. To virtually eliminate him from the business. Quite separate (and very extensive) is the “chapter” of responsibility within criminal law. The Criminal Code knows many crimes that a member of the body can commit. And often very easily.

There is no need for a companion to be safe.”owner”, respectively. “co-owner” of the company. If, by means of its influence in that society, it exerts a decisive influence on its conduct to its detriment, it must compensate for that injury.. Again, with exceptions. At the same time, the partner is at risk of exclusion from the company due to violation of his obligations. In some cases, he can leave the company unilaterally.

Whatever the dispute is related to the running of a business corporation, here too it is true that The strategy needs to be very well thought out. Disagreements of companions can easily turn into a mass of intertwined disputes, from which only a long and very difficult path can lead. Therefore, at each moment it is necessary to make a good estimate of your position and the likely development. Thus, inKnow if it is better to act or launch an offensive action. Or combine both. This is what a lawyer can do best.t.

časté otázky

Co je dobré vědět o této oblasti?

What is maladministration?

The definition of “maladministration” is quite broad, but in general it can be described as a violation of binding rules prescribed by legal norms for the conduct of a public authority in its activities, to which it is obliged and authorized on the basis of generally binding legislation. However, in the case of maladministration, this is not an illegal decision, but the procedure of the authority, which was subsequently reflected in its decision. It is often an unreasonable length of proceedings, where, although the decision given is legal in itself, the time until it is issued is contrary to procedural rules or reasonableness and the parties are therefore entitled to compensation for delays in the proceedings.

What is an illegal decision of the authority?

The right to compensation for damage caused by an unlawful decision has the parties (including omissions) in which a decision was issued, as a result of which they suffered property or non-property damage. However, it is not enough just to disagree with the decision or to seek its annulment or to declare it incorrect at the next instance. Compensation can only be claimed if the decision has been annulled or changed for illegality after it has become legal (or if the decision is non-final but enforceable).

Should I oppose the lawsuit if I recognize the claim?

Even if you accept the claim, it is better to prevent a court decision on it, for example, by paying the debt earlier or by agreeing with the claimant, as the court will usually also impose an obligation on you to pay the costs of the plaintiff's proceedings. However, the plaintiff often has the will to agree to withdraw the action in exchange for at least partial or earlier payment of the debt. It always makes sense to at least attempt an extrajudicial action.

How to claim damage caused by the state?

A claim for compensation for damage caused by the state is applied in a different procedure than a normal claim. The first step is to apply for compensation to the competent authority, often the ministry. If the Office does not grant compensation within 6 months of the submission of the application, judicial enforcement may be initiated. In such proceedings, the injured party is partially advantaged, for example, by a reduced court fee and substantially lower costs in the event of failure.

Where do I file a lawsuit? And where's the appeal?

To file an action, it is necessary to designate a court of substantive and local jurisdiction. The district court (district court in Prague) is usually competent in the case. Local jurisdiction is usually determined according to the defendant's place of residence or domicile in the case of a legal entity.

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JUDr. Vít Kučera, MBA
Vít has extensive experience in representing clients before domestic and foreign courts, especially in commercial disputes. He specializes in preliminary measures, which he also deals with in his publishing activities. Since 2013 he also serves as an arbitrator of the Football Association of the Czech Republic.
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Mgr. Martin Tůma, Ph.D.
Martin mainly deals with commercial cases, including disputes arising from unfair competition, damages or insurance claims. He likes to look for simple solutions to (seemingly) complex problems. He also deals with construction law, in connection with which he represents clients in negotiations with administrative authorities and before the courts.
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Mgr. Kateřina Obertová
Kateřina has been involved in litigation since the beginning of her long legal practice, during which she dealt mainly with disputes arising from civil and commercial law contracts, as well as cases concerning family law or property ownership. In advocacy, he bases himself on clarity and empathy, with which he tries to offer functional and practical solutions to clients.
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JUDr. Ing. Vít Švestka
Vít is a lawyer specializing in solving problems in the field of tax law before the tax authorities and the courts. He also acts as a tax advisor and thus can provide additional valuable advice and experience on how to reduce the risk of initiating proceedings at all. Vít also deals with corporate disputes. In addition to his legal education, he also holds a degree from the University of Economics in Prague, where he also participates in teaching and publishing activities.
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Mgr. Marie Timoščuková
Marie is an expert in labor law. Therefore, he also has extensive experience in representation in labor disputes in the field of labor law, from both sides of the “barricade”, that is, on the part of both employers and employees. Thus, it has not only successfully defended the validity of the dismissal, but also obtained many illegally withheld bonuses to employees.
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Mgr. Vojtěch Adámek
Vojtěch is an experienced lawyer specializing mainly in disputes over claims arising from contracts, including settlement of parties after termination of contracts, debt collection and disputes over compensation for damage (damages). He considers understanding the client's needs and finding effective and pragmatic solutions together, including extrajudicial termination of disputes, as the key to success.
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