Process of Squeezing Out Minority Shareholders From the Veiwpoint of the Target Joint-stock Company in the Czech Republic
Abstract
The focus of the present article is on the legal regulation of "squeeze-out" in the Czech Republic. This terms denotes forced passage of the ownership title to shares in a joint-stock company to its main shareholder.
Successful implementation of this process is conditional, to a large degree, on how the target company adheres to its legal duties. The article lists the basic statutory duties of the target company in the squeeze-out process.
For a squeeze-out to succeed, the main shareholder will have to make certain arrangements with the company. The main duty of the target company in this regard is to convene its general meeting, which needs to adopt a resolution on squeeze-out of minority shareholders.
The article goes on to describe the duties borne by the company in the preparation and course of its general meeting, and also those that come into play after the necessary resolution on squeeze-out is adopted.