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Coronavirus – Lex Covid Justice – Czech Republic

  • Czech Republic
  • Coronavirus
  • Coronavirus - Country overview

16-04-2020

On 31 March 2020, the government proposed a bill called “Lex Covid Justice.” We summarize the most important upcoming changes below.

Waiver of missed deadlines

Courts may waive the parties’ missed deadlines if they have been missed as a result of restrictions resulting from extraordinary measures (applicable particularly in civil, administrative, insolvency and execution proceedings). It is also possible to waive missed deadlines for which it was not possible before.

Lex Covid Justice and insolvency

  • the obligation of legal and natural persons conducting business to file debtor’s insolvency petitions is postponed until six months after the termination or cancellation of extraordinary measures. However, this will not apply if these persons were already bankrupt before the state of emergency
  • insolvency petitions of creditors submitted from the effective date of the bill until 31 August 2020 will not be taken into account
  • until 31 August 2020, the debtor may file an application for an extraordinary moratorium with the insolvency court. This offers entrepreneurs a special protection regime, during which they are protected from bankruptcy decisions and allows them to run their business

Lex Covid Justice execution

It is proposed that the cessation of fruitless executions be compulsory, even without the petitioner’s proposal or consent. This applies to executions, which have not been partially satisfied or any property detected in the last three years.

Effects of Lex Covid Justice on corporate law

  • the statutory body, the supervisory board or the general meeting may decide outside the meeting in writing or using technical means even if the founding legal act does not allow it
  • the proposed bill automatically extends the term of office of a member of an elected body if this term of office expires between the effective date of the bill and three months from the day following the date of termination of emergency measures
  • the period for convening the General Meeting for the purpose of discussing the annual financial statements is also extended by three months from the day following the date of termination of emergency measures

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