On 21st September, 2015, the Czech Government submitted Parliamentary Bulletin No. 571 to the Chamber of Deputies with a bill amending Act No. 256/2004 Coll. on capital markets undertakings.
The declared aims of the bill are to harmonize Czech and EU legislation, transpose several European directives into Czech law, make the fund business and Czech capital markets more appealing and to ensure these markets functions more efficiently while heightening consumer protections.
The bill should strengthen the position of the issuer; based on the newly set 1% limit in § 122(1) of the Capital Market Undertakings Act, issuers will have access to a better overview of investors with the rights of qualified shareholders in the meaning of § 365 of the Business Corporations Act (primarily concerning the right of qualified shareholders to request that the Board of Directors convene a General Meeting).
The bill regulates administrative charges under Act No. 634/2004 Coll. on administrative charges in relation to capital market undertakings, collective investments and the insurance business; primarily, it standardizes amounts of administrative fees for application procedures. Some procedures are newly fee-bearing while certain superfluous fees have been abolished. This will remove ambiguities that have arisen in the past with respect to these charges.
Finally, the bill establishes the Czech National Bank’s obligation to publicise all its valid rulings (including rationales) in a manner enabling remote access, and enables issuers in certain circumstances to submit their securities prospectus and public information exclusively in English.