We would like to inform you about the recent increased activities of the registration courts in monitoring compliance with the obligation to publish the annual financial statements and their approval in the collection of documents of the Commercial Register. Previously, there was no significant sanction for non-compliance with this obligation.
However, for some time now, a fine of up to CZK 100,000 for non-compliance with this obligation has been introduced. Furthermore, there is even a greater risk in the repeated breach of this obligation or non-compliance with the obligation to submit documents within the time limits set by the register court. In such a case, the register court may, from its own motion, initiate proceedings for the dissolution of the legal entity with liquidation and thus cause considerable complications.
Given that the same sanction, i.e. the dissolution of a legal entity with liquidation, is applied even if the request to deliver the documents fails to be delivered to the legal entity, we recommend taking extra care to ensure that the company’s data box is checked regularly.
Moreover, the register courts have recently begun not only checking compliance with this obligation solely on the basis of „complaints“ by third parties, but also from their own initiative, typically when processing applications for any changes in the commercial register.
Do not hesitate to contact us if you feel that you are in need of assistance in this area, as well as in case of any questions.