As part of our legal services, we focus on the issue of “asset assumption” under Section 1893 of the Civil Code and the delineation of a “proportionally determined part” of assets, to which the concept of asset assumption is connected in law, resulting in a recipient’s assumption of both the assets and debts related to the assumed assets by operation of law. As a part of the provided legal services, we have examined the relevant aspects of German legal doctrine, which arrived at the conclusion that asset takeover is only triggered when the proportionally determined part assumed by the recipient leaves the debtor with less than 10 % of his original assets (i.e., after the transaction). This is relevant even though decisions of German or Austrian courts are not binding upon Czech courts. At the same time, we have examined this issue in light of historic decisions of Czechoslovak courts, which were of the opinion that it is triggered even in the case of a transfer of a single piece of real estate of a special nature (functional economic unit).
