According to the Czech Supreme Court, Decision File No. 27 Cdo 3081/2017, dated 28 March 2019, if a general meeting of shareholders of a limited liability company is unable to adopt any resolutions as a result of disturbed relations among shareholders, this normally constitutes grounds for dissolution of the company and its liquidation under Section 93(c) of the Business Corporations Act.
Section 93(c) of the Business Corporations Act is not only concerned with business activity (or other activity directly leading to the fulfillment of the purpose of the business corporation) aimed toward third parties (i.e., externally). In relation to other grounds of dissolution and liquidation of a business corporation, as stated in Section 93(a) and (b) of the Business Corporations Act (concerned specifically with external activities of a company), the obstacle foreseen in Section 93(c) of the Business Corporations Act especially concerns internal (in)activity within the business corporation, characterized especially by long-term or permanent failure to act.
A long-term failure to act on the part of the supreme body of a company resulting from dysfunctional relations of shareholders, by itself (i.e., without the need to examine other circumstances, such as compliance with filing duties owed to the registration court or financial authorities) leads to the conclusion that the company is unable to carry out its activity because of irreconcilable antagonism between shareholders.