Czech Republic
Jazyky

Languages

Notarial deed form required for some powers of attorney

Section 441 (2) of the new Civil Code (Act No. 89/2012 Sb.) provides that, if a special form is required for a legal act, a power of attorney must be granted using the same form. However, this seemingly simple provision will cause major complications for a number of companies, both in terms of time and finances.

The practice will be that, where a public instrument (i.e. a notarial deed) is required for a specific legal act, a power of attorney will have to be granted as a notarial deed. This will apply mainly to resolutions of the sole member/shareholder in matters such as the preparation of the founding deed or resolutions on an amendment to the founding deed for which a notarial deed is prescribed.

The situation would not be that serious if this requirement applied to Czech members/shareholders only. However, it will make things much more complicated for companies with a foreign member/shareholder. As a matter of fact, the power of attorney will have to be granted in the form of notarial deed before a Czech notary in the Czech Republic.

The Ministry of Justice of the Czech Republic is preparing an interpretation statement in order to shed some light on the problem.

 

Did you like this article? Help us by sharing it.