Abstract
The author analyses the priority dividend attached to preference shares in the chapter. Firstly, he introduces the current understanding of the priority in the Czech legal system.
Subsequently, he discusses how priority is understood and expressed in the legal systems of the German-speaking countries and in the Anglo-American legal environment and presents several classifications of preference shares. In the last part, he analyses whether the conclusions of these jurisdictions and the introduced types of preference shares are transferable to the Czech legal environment.
In particular, he examines whether the preference which is expressed in precisely in advance objectively determined or determinable manner does not interfere with the prohibition of interest shares, whether there is a problem if the company does not have sufficient profits, or whether the time priority can establish a separate type of share. He concludes that preference shares with a preference in time, where preference is expressed in precisely in advance objectively determined or determinable manner, are acceptable in the Czech legal environment.