Legal
25 March 2020

Government approved a first draft bill to implement the announced changes in the judiciary, insolvency law and the prolongation of statutes of limitations

Yesterday, the Government approved further legislative measures aimed to prevent the spread of the coronavirus disease (COVID-19) and reduce its impact on the businesses. In addition to measures aimed to prevent the spread of the disease and protecting the most vulnerable part of the population, the Government also approved a first draft bill to implement the announced changes in the judiciary, insolvency law and the prolongation of statutes of limitations.

Milina Schifferdeckerová

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Please find below an overview of the proposed changes:

1. Prolongation of statutes of limitations

Private law statutes of limitations shall be suspended until 30 April 2020, meaning that the deadlines for exercising the individual rights or applying for protection of individual rights in a court of law will be prolonged.

Provided that such time limitation expired after 12 March 2020 until the act becomes effective, this deadline shall not expiry earlier than 30 days from effectiveness of the act.

Subject to certain exceptions, the same principles for prolongation of the procedural deadlines stipulated by general procedural rules or courts in judicial proceedings shall apply.

2. Judicial proceedings

In times of emergency, courts will conduct hearings only to the extent necessary. The protection of health may be a reason to exclude public from a hearing.

3. Insolvency law

The statutory deadline to file a so called “debtor’s bankruptcy petition” shall be prolonged from 30 to 60 days, provided that the debtor meets the statutory conditions in the period between 12 March 2020 and 30 April 2020.

The right to sell a pledge or to conduct an auction shall not be exercised until 30 April 2020.

4. Per rollam decision making process

Corporate bodies of legal entities may use electronic means for making decisions (so-called per rollam decision-making) even if such procedure is not regulated in their internal corporate regulations. The provisions of Section 190a to 190d of the Commercial Code regulating voting at the general meeting of a joint stock company shall apply accordingly.

5. Lifting of restrictions within public procurement

During the state of emergency, the prohibition to contract emergency supplies with entities which are not registered with the Register of Public Sector Partners is temporary lifted (if the conditions for the direct negotiation are met).

In term of deadlines, the act in general works with the deadline 30 April 2020. However further prolongation is not excluded.

At the same time, the Government approved to pass the act in a shortened legislative procedure. The act should become effective by its publication in the Collection of Laws.

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