(Decision of the Supreme Court of the Czech Republic, file no. 29 Cdo 4284/2007 from 30.09.2009)

The period for calling a regular General Meeting set (counted) from the last day of the fiscal year is logically not only the deadline (given a proper and ordinary course of events) for the General Meeting to approve the results of that fiscal year, but also the ultimate deadline for final accounts that serve the regular General Meeting to be considered as those that can serve shareholders as a real image of the accounting of a joint stock company, based on which the shareholders can competently decide on the distribution of profit.

It is imperative that the meeting of the conditions for profit distribution amongst shareholders, stipulated by article 15 of the Second Guideline and the provision of  § 178 section  2 of the Commercial Code, is supported by the final account, whose data illustrates the meeting of the conditions. This final account cannot be one that contains data regarding the state of the company’s property ten months ago.