In a ruling handed down on April 5, 2017 (File No. 7 Cmo 205/2016), the High Court in Prague held that limited liability companies with multiple directors should ensure that the number of their directors is reflected in their Articles of Association. This is a requirement for the good management of these companies. In contrast, the mandatory public registration of this information serves only as an announcement. Changes to the number of directors are, thus, made by amendments to the Articles of Association and not by registration in the Commercial Register.

In the same decision, the Court found that foreign notaries are not allowed to draft the notarial deeds underlying these changes or to arrange directly for public registration. This ruling could have major implications for companies with significant foreign membership.

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