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Deadlocks (not only) in capital companies

Publication at Faculty of Law |
2023

Abstract

Since 1990, several tens of thousands of companies have been established every year in the Czech Republic. Many newly established and existing capital companies have two partners (often persons who know each other well and have decided to join together with a business purpose).

On the one hand, the old adage of "shared sorrow, half the sorrow, shared joy, double the joy" and "more heads know better" applies even in the context of modern business corporations. On the other hand, if both shareholders have a 50% stake, a problematic situation arises, especially if each of them has a different idea about a certain decision and at the same time neither of them is willing to give up his position.

In such a case, a deadlock arises. The article deals with their solution in contemporary conditions.