Transformation of shares admitted to trading on a regulated market as a tool for circumvention of the protection of minority shareholders
Abstract
The simple fact that shares are publicly tradeable has a number of impacts on the status of joint-stock company and it also brings costs. That might be a motivation for delisting, so called exclusion from trading.
For such cases, minority shareholders are protected. This paper deals with circumvention of the protection of minority shareholders by using the transformation of shares.
The current regulation of transformation of shares in the Czech Republic will be analysed, as it is laid down in the Act No. 89/2012 Coll., Civil Code and also in the Act No. 90/2012 Coll., on Business Corporations. The legislation shall be assessed, weaknesses shall be identified and recommendations shall be suggested in order to increase the effectiveness of protection provided to minority shareholders.