Category: Czech Republic

  • Recent Whistleblowing Directive Imposes 
New Obligations on Companies

    
On 23 October 2019, a new directive of the European Parliament and the Council of the EU on the protection of persons who report breaches of Union law (the “Directive”) was signed. It requires Member States to adopt laws, among other things, obliging companies to establish reporting channels and to ensure sufficient protection of whistleblowers. The Directive also provides for penalties applicable to both individuals and legal entities. Such national regulations and related whistleblowing measures shall come into force in less than two years. Please find below a brief summary of the legal aspects, the new obligations and the possible penalties in relation to the new whistleblowing Directive.

    Who is a whistleblower? And, how is whistleblowing regulated in the Czech Republic?

    A whistleblower is anyone who has information about insider illegal activities or wrongdoings occurring within an organization, company or any other entity and reports such information to some higher authority, a senior officer, external specialized advisers, public bodies or generally to the public.

    Compared to Slovakia, Ireland and other EU Member States, the Czech Republic has no special whistleblowing act providing  rules and protections for whistleblowers. The only existing regulation similar in nature applies to public officers who report any suspicion of an illegal offense being committed in a public service office (government regulation 145/2015 Coll.). In the private sector, the Czech Labor Code generally requires that employees prevent any harm or damage to the employer, other employees or third parties; and in the event there is such a risk, employees are obligated to inform their superiors. Further, the Czech Criminal Code lists criminal offences that require mandatory reporting and the failure to report such offenses will result in criminal prosecution.  While some Czech acts (e.g. the Criminal Proceedings Code, the Code of Administrative Procedure, etc.) relate somewhat to whistleblowing, there is no comprehensive whistleblowing law.

    What is the new Directive? And, what are its objectives?

    The purpose of the Directive is to lay down minimum standards of protection of persons reporting breaches of Union law in the areas of public procurement, financial services and prevention of money laundering, product safety and compliance, protection of the environment, personal data protection and others. However, the Directive does not affect the current law related to attorney-client privilege. Therefore, any information disclosed to legal advisors within the whistleblowing programs will remain subject to an attorney’s privacy obligations.

    The Directive applies to both the private and the public sector and it aims to protect reporting persons who acquired information on breaches in a work-related context. Such persons include, for example, workers (employees), self-employed persons, shareholders and persons in management.

    The general rules for internal and external reporting as well as rules for public disclosures are also set by the Directive. Internal reporting should always precede other reporting forms. By 17 December 2023, Member States will be obliged to adopt laws under which legal entities in the private sector with more than 50 workers will have to establish channels and procedures for internal reporting as well as follow-up. Such channels will enable persons in a work-related context to report information on breaches of law. The reporting channels may be operated internally by a person or department designated for this purpose or externally, for example, by specialized legal advisors.

    The Directive prohibits any form of retaliation against reporting persons such as suspension, dismissal, demotion or withholding of promotion, a negative performance assessment or employment reference, penalties, unfair treatment or any other harm, including harm to the reporting person’s reputation.

    Transposition of the Directive and the Bill on Protection of Whistleblowers

    Member States must bring into force all national laws necessary to comply with the Directive by 17 December 2021. As regards to legal entities in the private sector with 50 to 249 workers, Member States must bring into force the relevant laws requiring such entities to establish internal reporting channels by 17 December 2023.

    In 2018, the Government of the Czech Republic drafted a bill on the protection of reporting persons. However, this bill was strongly criticised. It was also prepared before the Directive was adopted. Therefore, it is now subject to a complete redrafting. One related hot topic is whether a new body, the Agency for Protection of Reporting Persons under the Ministry of Justice, should be established as the enforcing body or whether the enforcement should be assigned to various existing public bodies. Any further details related to the current draft of the Czech whistleblowing regulation are, at the moment, unknown.

    Practical implications and new obligations for companies

    As a result of the Directive and its transposition into Czech law, companies are obliged to introduce measures of protection through the implementation of various procedures and processes, including the following:

    • the establishment of internal reporting channels which may be operated internally or externally by third party advisors and which will be suitable for the receipt of both written and oral reports (via telephone, voice message, email, post, physical meetings, etc.);
    • the acknowledgement of receipt of the report to the reporting person within seven days of that receipt;
    • the designation of an impartial person or department competent in following-up on reports (e.g. a designated employee, an internal department or specialized legal advisors);
    • the diligent follow-up and feedback within three months from the acknowledgement of receipt of the report;
    • provision of information regarding the implemented whistleblowing measures and procedures to the competent authorities;
    • the assurance that a duty of confidentiality is owed to the reporting person;
    • the processing of data in accordance with personal data protection laws;
    • the maintenance of record keeping systems of the reports; and
    • the prohibition of and protection against any retaliation towards the reporting person.

    Will there be any penalties for noncompliance?

    Under the Directive, any individual or legal entity which in relation to a reporting person (i) hinders or attempts to hinder the reporting, (ii) retaliates, (iii) brings vexatious proceedings and/or (iv) breaches the duty of maintaining confidentiality will be punished by an effective, proportionate and dissuasive penalty. In practice, penalties commonly used in administrative law will be applied, especially administrative fines or the prohibition of certain business activities.

    From the above summary, it is clear that the Directive requires introduction of rather complex whistleblowing policies and procedures. Therefore, it is advisable that companies take this into account and begin to prepare themselves for the establishment of the reporting mechanisms as an integral part of their current compliance systems.

    Please take this newsletter as preliminary information on the Directive and its potential implications in the Czech Republic. We are monitoring the legislative process as well as all available information and will follow-up with more details and practical information as they become available.

    By Ivana Storkova, Senior Associate, and Kristyna Noskova, Associate, Dentons

  • Online Aggregators Under the New Digital Single Market’s Rules

    It has been roughly a year since the somewhat controversial DSM Directive entered into force on June 7, 2019. The clock is ticking as the EU member states are required to transpose the Directive into national law within 24 months—a half of which is already gone. The most discussed provisions of the DSM Directive are included in its Articles 15 and 17.

    This article covers the former of the two and its impact on the online aggregators which provide their services to users within the EU. Firstly, publishers and aggregators are introduced, together with interactions between the two, including their advantages and disadvantages. The article then follows with a description of the rights to be granted by the transposition of Article 15 of the DSM Directive together with the exceptions and their limitations. Experiences with similar legal regulations are discussed afterwards and the possible impact of Article 15 is evaluated.

    Publishers and Aggregators

    Article 15 aims to protect press publications in the online environment, in particular with regards to the use of such by information society service providers (“ISSP”). The DSM Directive recognizes the contemporary paradigm of the online availability of press publications through services, such as news aggregators and media monitoring services, as noted in the Directive’s Recital 54, the first of a handful covering the basis for the provision of Article 15.

    The DSM Directive explains the difficulties of press publications’ publishers in the online environment. Basically, the publishers invest in their businesses in order to facilitate the creation of works by their authors, which they seek to economically exploit, often via advertisement revenue generated by user traffic on publishers’ websites. The aggregators utilize a similar concept, but instead of creating content, they use content of various publishers, in whole or typically in part, without the necessity of such an investment. The publishers’ argument is that the availability of works by their authors on the aggregators’ platforms  siphons online traffic off of the publishers’ websites, therefore damaging their advertisement revenue.

    But which ISSPs can be considered aggregators and are about to be affected by Article 15? Mostly, discussions tend to circle around various news services, such as Google News. These websites provide their users with a news feed put together from various articles taken in part from other websites. Usually, the title of an article, often with a picture and sometimes a first few words or sentences, is presented with a hyperlink which takes the user to the source website where the full article is available.

    However, such excerpts of articles often appear in other services, most notably in social media like Facebook, Twitter, or LinkedIn, where the service automatically adds such an excerpt to a post which contains a hyperlink to the compatible content. Such an addition usually contains the headline of the linked article together with a picture and a few words extracted from the source. Also, news is far from being the only content used in this way. A good example of another kind of online aggregator is Metacritic—a website focused on reviews of multimedia entertainment, namely videogames, movies, TV, and music. One of the core values of Metacritic is its algorithm, which aggregates critic’s scores from various sources to present its users a simple, one-number score evaluating a product. The individual source scores are displayed on the website, together with a one-paragraph excerpt from each utilized article and a hyperlink to its source.

    Pros and Cons of the Existence of Aggregators

    The matter of the existence of these online aggregators is far from being black-and-white, though, but rather comes with both pros and cons, as can be expected. The amount of information published and shared online in any given moment is immense, so it is understandable that users seek a sort of a guidance in the information jungle which the internet of nowadays has grown into. In this era when fact-checking is a necessity and the issue of fake news omnipresent, easy inclusion of sources of information in posts published on social media can also be considered remarkably useful.

    For media outlets, especially smaller ones, the online aggregators can actually cause an opposite effect on traffic than the negative one described above. Users who check only a handful of well-known websites may never visit other ones, whereas the aggregators’ users can be interested in an attractive headline and visit websites which they have never heard of before. In theory, this can also promote quality among media, where good content may attract a wider audience. These effects were already observed in Spain and Germany, as described below.

    Unfortunately, those advantages may easily become quite the opposite under different circumstances or even when considered from another point of view. If the users get a sufficient amount of information from the online aggregators, they may have very little incentive to visit the actual sources of the information concerned. There is no doubt that this is indeed the case when a significant part or entirety of the original content is available through an online aggregator.

    As aggregators assist with spreading information in general, they can also help to share fake news or other similarly problematic or even illegal content. It is therefore obvious that some sort of regulation is indeed required—and will evolve in time together with the online environment itself. However, the regulation of this kind should affect the original sources of the problematic content, i.e. the subjects who have, contrary to aggregators, control over such content in the first place and is outside of the scope of the DSM Directive.

    Even though the existence of aggregators is nothing new and there already is regulation in place, which applies to their operation, the need for a more particular legislation was identified and projected into Article 15 of the DSM Directive.

    Rights Provided by the DSM Directive

    The regulation to consider in connection with Article 15 of the DSM Directive is the Information Society Directive, namely its Article 2 and Article 3(2):

    • Article 2 of the Information Society Directive asks the EU member states to grant authors, performers, phonogram producers, producers of the first fixations of films, and broadcasting organizations “the exclusive right to authorise or prohibit direct or indirect, temporary or permanent reproduction [of their works, performances, etc.] by any means and in any form, in whole or in part”.
    • Article 3(2) of the Information Society Directive then asks the EU member states to grant performers, phonogram producers, producers of the first fixations of films, and broadcasting organizations “the exclusive right to authorise or prohibit the making [their performances, etc.] available to the public, by wire or wireless means, in such a way that members of the public may access them from a place and at a time individually chosen by them”.
    • Finally, Article 15 of the DSM Directive asks the EU member states to grant these rights to “publishers of press publications established in a Member State (…) for the online use of their press publications by [ISSP]”.

    In essence, the DSM Directive explicitly aims to grant publishers the same rights which are enjoyed by the authors and other subjects. This is, however, not a revolution of any sort. The works which are used by online aggregators have already been protected by copyright, and these rights, or their holders, remain untouched by the DSM Directive. As early as in 2009, the European Court of Justice stated, based on the Information Society Directive, in case C-5/08 (Infopaq) that even an extract of merely 11 words of the original article can be considered a protected reproduction in part of a work, if the extract expresses the author’s own intellectual creation.

    The DSM Directive seeks balance between the interests of the ISSP and the rightholders, since it respects certain uses of works by aggregators and their positive impacts. At the same time, as is a common thought for more provisions of the Directive, it attempts to facilitate ways for the rightholders to be compensated for the uses of works, rather than to establish a needless restriction. The attempt to promote said balance is incorporated into Article 15 in the form of exceptions from the rights it grants, which need to be examined next, together with business practices of the aggregators, to get a full picture of the new regulation.

    Exceptions to the Rights and their Limitations

    To evaluate the impact of Article 15 of the DSM Directive, the copyright protection and ways in which the works are used must be considered, as well as the process of how the aggregators acquire content for their services.

    The content used by an aggregator consists mostly of written articles, of which usually just short excerpts are used. Other types of content are also involved, like photographs (or pictures in general) or videos. Naturally, such works fall under copyright protection, which means certain subjects own the rights or enjoy the right to exercise economic rights.

    Even though authors create works, it is often publishers who actually own or exercise the rights to them. In this sense, the DSM Directive barely changes anything per se, because under national legislations, it is usually publishers who have to be sought in order to get permission to use a work of this kind. The DSM Directive attempts to clarify how the aggregators and publishers should operate within more tangibly set boundaries. However, its approach is questionable, as it ultimately adds a new layer of rights and exceptions on top of the existing regulations, without handling their possible interactions. This can unfortunately end up as obfuscation, rather than clarification.

    This can be illustrated on the scope of the content the ISSP shall be allowed to use according to the DSM Directive. One of the limitations of the protection granted by Article 15 is that it does not apply to hyperlinking. Another one exempts from the protection the “individual words or very short extracts of a press publication”. There are already examples of such exceptions, namely in France and Germany. The legislation in these countries is based on a qualitative point of view (as Recital 58 of the DSM Directive suggests the importance of the consideration whether the use of individual words or very short extracts undermines the investments made by publishers in the production of content). In France, the conditions of the exception are fulfilled if the use of very short extracts does not serve as a substitute to the source itself, i.e. if a user viewing an extract is still motivated to read the whole article. Germany proposes to allow extracts in the form of i) a headline, ii) a small (128 × 128 px) picture, and iii) a voice or video (or both) section within the duration of up to three seconds.

    The German approach is interesting also because of how pictures are proposed to be handled. Basically, a picture is recognized, at least in some cases, as a part of an article, similar to a headline or another part of it. The size limitation may be a way to handle another interpretation—that a part of a picture or a smaller, lower-quality reproduction of it can be considered an excerpt of an original picture. Such an interpretation would fulfill the conditions of the exception in Article 15 mentioned above. This could also apply to short extracts or audio files or videos.

    Last but not least, the rights provided in Article 15 expire two years from the publication of a work, counted from January 1 of the year following the publication, and shall not apply to works published before June 6, 2019.

    Recent Experience in Aggregators Regulation

    With the business of aggregators and the rights and exceptions of Article 15 described, it is possible to look for similar national legislation which may help with the evaluation of the impact of the DSM Directive. Based on these practical examples, it may be clearer how transpositions of the Directive may or may not change the paradigm of online aggregators.

    In 2014, Spain passed a new law which imposed an obligation on aggregators to pay fees to the Association of Editors of Spanish Dailies for showing any, even a tiny, part of a publication. The motivation was to protect the media industry and was apparently mostly aimed  at the Google News service (that is, however, provided freely and without ads). In reaction, Google closed the service in Spain and removed Spanish media from it. This, unsurprisingly, immediately hurt traffic to Spanish media websites. A study commissioned shortly after for the Spanish Association of Publishers of Periodical Publications showed that the new legislation was “absolutely harmful to the Spanish news media and innovation in general”.

    Similar legislation was passed around the same time in Germany and the situation developed somewhat similarly. To avoid fees for displaying snippets from publishers’ articles, Google News in Germany changed to only showing headlines. As even that had a negative impact on news websites’ traffic, German publishers allowed Google to use snippets again. At the same time, publishers tried to put pressure on Google through the courts, arguing the dominant market position of the company.

    After implementation of Article 15 in France, Google logically chose a similar approach. However, this time, the French Competition Authority (“FCA”) assessed that this conduct likely constitutes an abuse of Google’s dominant position, and thus FCA issued interim measures ordering Google to negotiate in good faith the terms and conditions as well as the remuneration due for the use of content from publishers.

    The Impact of the DSM Directive on Publishers and Aggregators

    As shown in the examples above, the relationship between the aggregators and publishers is a complex one, and often mutually beneficial. From the publishers’ standpoint, a part of the situation is finding ways of generating profit in the modern paradigm of declining print incomes and growing online consumption. Although aggregators have proven to positively impact online traffic on news websites, thus improving publishers’ ad revenue, the same publishers have been looking for improving this revenue by imposing fees on aggregators for using their works—partially also to alleviate the market power some of the aggregators enjoy.

    In this sense, the DSM Directive aspires to improve the situation by clearer rules and exceptions. Ironically, the EU may be using the wrong tool for a good cause. As the Directive leaves a certain amount of space for national legislations in an attempt to harmonize the legal status of the aggregators within the EU, various transpositions of the Directive in member states may, at the end of the day, have an opposite effect.

    In the worst-case scenario, the aggregators will have to adjust their services to the various requirements of different EU member states. This can lead to a closure of some services in some places, similar to Google News in Spain. Where they remain, the new rules may still prove ineffective in regulating big entities, who can still use their strong market presence to impose conditions, which are unfavorable to publishers, contrary to the goals of the DSM Directive. This means that Article 15 of the DSM Directive just adds one more right to play but does not solve the fundamental cause of these problems—the imbalance of power between the publishers and largest platforms.

    Article 15 also considers merely publishers, while other rights and subjects are left to the already-existing regulations. Examples of such are authors themselves, whose rights are not affected by the DSM Directive. This coexistence of various regulations and multi-layered protection is not solved by the DSM Directive, maybe even worsened, and does not contribute to clarity in the aggregators-publishers relationship over the legal use of publishers’ works.

    As a matter of fact, the practicalities of this relationship often come down to negotiation between the publishers and online platforms. In the case of dominance or agreements between competitors, the competition rules come into play. This can be illustrated by the experiences from Germany and France, where publishers agreed to Google News practices, but at the same time argued that they had been effectively forced to the agreement by the sheer market power of the service.

    The EU member states have a little under one year left to transpose the DSM Directive and discussions about the particular nuances of the transpositions will continue. For many ISSPs, or aggregators specifically, changes can be expected to be rather minor, since these services have already been using rather short excerpts of works, pursuant to the already-existing regulations. Despite all the stir Article 15 caused, the final result may end up being underwhelming for all parties involved. The biggest risk is a scattered harmonization among the EU member states, which would impose obligations to comply with various new rules in different countries—a needless complication for the ISSP which does not contribute to achieving Article 15’s goals.

    By Josef Donat, Partner, Bohuslav Lichnovsky, Senior Associate, and David Slama, Junior Lawyer, Rowan Legal

  • Main Changes of the Soon to Be Effective Amendment to the Czech Labor Code

    On June 26, 2020, a significant amendment to the Czech Labor Code, (which we informed you about in our newsletter back in February 2020), was published in the Collection of Laws as the Act No. 285/2020 Coll. Adoption of the amendment was originally planned with an earlier date, but was delayed due to extraordinary circumstances caused by the coronavirus. Nevertheless, apart from this delay, the adoption procedure was smooth and the amendment (particularly as a result of the previous tripartite consensus) did not undergo any significant changes during the legislative procedure.

    The amendment and its provisions will enter into force gradually in two waves.

    The new rules for the delivery of documents between the employee and employer and for the transfer of rights and obligations from employment relationships will become effective as of July 30, 2020.

    The new regulation on the delivery of documents is a long-awaited and desirable change. Although a personal handover to the employee at a workplace will remain the primary method of delivery, the amendment will allow the employer to immediately proceed with alternative forms of delivery, including by data box or post, if delivery at the workplace is not possible. The employer will no longer be forced to try to deliver documents to the employee at places other than the workplace and will not have to send any “delivery teams” to various addresses where the employee might possibly be present.

    There are also changes in delivery by post. Nowadays, the Czech Post does not offer a service that meets the current requirements for delivery by post set out by the Labor Code. This makes postal delivery more of a theoretical option from which legal counsel often discourage employers.

    The amendment adapts the length of the period for depositing documents that could not be delivered at the post office to standard services of the Czech Post and therefore makes postal delivery a viable option. However, the amended Labor Code will still contain the requirement for the employee to be duly advised about the consequences of refusing the acceptance of the document. From our previous experience, Czech Post struggles to meet even this requirement. Therefore, we are not sure to what extent the amendment is sufficient in this respect.

    On the same day, stricter rules for the transfer of rights and obligations from employment relationships (also known as the automatic transfer of employees), which follow the case law of the European Court of Justice, become effective. In principle, such an employee transfer should only take place if a complete economic unit is being transferred. Most cases of outsourcing, insourcing or change of supplier would therefore not trigger an automatic transfer of employees from one employer to another.

    The second wave of the amendment’s provisions will take effect on January 1, 2021, when the new rules for calculating paid leave (vacation) will take effect and job sharing will be introduced.

    The method of calculating paid leave will change completely as it will be now calculated based on worked hours, not days. This should eliminate the unfairness of the current method, for example in relation to employees with shorter or unevenly distributed working hours. In addition, employees shall be newly entitled to request a transfer of part of paid leave exceeding the statutory minimum of four weeks to the next calendar year. Currently, employee do not have the right to defer any paid leave to the next year.

    Finally, an important new provision of the amendment is the explicit regulation of job sharing. These fresh rules will allow the employer to set up one work position with a weekly working time of 40 hours and assign to it two or more part-time employees who will alternate on the position and schedule their work on their own. This is to introduce further flexibility in employment relationships.

    This amendment represents a fundamental change to the Labor Code. It will have an impact on both the employment (calculation of paid leave, document delivery) and business (transfer of employees due to outsourcing and disposals with an enterprise) matters and will ultimately affect all employers.

    We will be glad to help you with implementation of the new and amended rules of the Czech Labor law in your company as well as with any other related questions or requests.

    By Andrea Hamorska, Counsel, and Michael Mracek, Associate, Dentons

  • White & Case and Hengeler Mueller Advise on MVM Acquisition of Innogy Czech Republic

    White & Case has advised Hungary’s state-owned energy group MVM on the acquisition of the entire share capital in Innogy Czech Republic from Innogy Beteiligungsholding, a member of the Innogy/E.ON Group. Hengeler Mueller advised E.ON on the deal.

    According to White & Case, “the MVM Group is a sovereign-owned integrated energy company with the highest market share in the national electricity and gas markets in Hungary and more than 50 years of experience in managing strategic energy assets, including the power generation portfolio.

    White & Case’s Prague-based team was co-led by Partners Jan Andrusko and Vit Stehlik and included Partner Ivo Janda, Local Partners Jan Stejskal, Jan Jakoubek, Vaclav Zaloudek, and Tomas Scerba, Counsel Pavel Cizek, and Associates Iva Cechrakova, Monika Sedlackova, Lukas Pavlik, David Wilhelm, Radek Kraus, Anna Starkova, Martin Vorisek, and Jan Voborsky. They were assisted by White & Case Frankfurt Local Partner Jan Ole Eichstadt.

    Hengeler Mueller’s team was led by Partners Thomas Meurer and Martin Ulbrich, and included Partners Matthias Scheifele, Dirk Uwer, and Wolfgang Kellenter, Counsels Gunther Wagner, Moritz Rademacher, and Partick Wilkening, and Assoicates Richard Suermann, Maximilian Hermans, Jil Kalender, Florian Krauss, Sebastian Heinrichs, and Tianyuan Zhuang.

    Editor’s Note: After this article was published CEE Legal Matters learned that Havel & Partners had worked alongside Hengeler Mueller in advising the E.ON Group. The firm’s team was led by Partner Jan Frey and included Counsels Josef Zaloudek, Petra Sochorova, and Richard Otevrel, Head Lawyers Dalibor Kovar and Albert Tatra, Senior Lawyers David Smida, Vojtech Katzer, and Stepan Cerny, and Lawyers Ivo Skolil, Lukas Jakoubek, and Pavla Kaufmannova.

  • Clifford Chance Advises Nadace Dagmar a Vaclava Havlovych VIZE 97 on IP Matters

    Clifford Chance has advised the Nadace Dagmar a Vaclava Havlovych VIZE 97 foundation on multiple intellectual property protection matters.

    Nadace Dagmar a Vaclava Havlovych VIZE 97 is a Czech foundation established by Dagmar and Vaclav Havel in 1997 that supports charitable projects in healthcare and culture. 

    According to Clifford Chance, the firm advised the foundation on “multiple matters mainly aiming to protect its intellectual property, while also representing the organization in enforcing intellectual property rights as a result of their violation by third parties.”

    Clifford Chance’s team included Partner Emil Holub and Junior Lawyers Ondrej Dolensky and Martin Urban.

  • Allen & Overy and White & Case Advise on Carlyle Group Acquisition of Stake in Memsource

    Allen & Overy has advised the management of Memsource on the sale of its majority stake to the Carlyle Group. White & Case reportedly advised the Carlyle Group on the deal.

    Allen & Overy reports that “the transaction was unique in terms of its complexity, as it was governed by English law and included a Luxembourg structure of the holding company in which the existing shareholders of Memsource subscribed their shares.”

    Allen & Overy’s team in the Czech Republic included Partner Prokop Verner and Senior Associate Jakub Cech, and was assisted by Consultant Hugh Owen of Go2Law. The firm’s team in Luxembourg included Partner Jean Schaffner, Counsel Marc Tkatcheff and Associates Guillaume Foillard and Benjamin Dahan, while its team in London included Partner Tim Harrop and Associate Joseph Fallon.

  • Weinhold Legal Advises Chropynska Strojirna on Acquisition of HLS Czech

    Weinhold Legal has advised Chropynska Strojirna on the acquisition of a 100% stake in HLS Czech.

    According to Weinhold Legal, Chropynska Strojirna “offers complete engineering processing in the body sector of the automotive industry. Chropynska Strojirna is a part of the Chropynska Group concern, a supplier of welding, assembly and transport lines designed primarily for the automotive industry in Central and Eastern Europe.

    The Weinhold Legal team was led by Partner Martin Lukas and included Attorney-at-Law Tomas Kocar.

  • KSB Advises Sandberg Capital on Acquisition of Stake in Revolgy Business Solutions

    KSB has advised Sandberg Capital on the acquisition of a 35% stake in Revolgy Business Solutions. Financial details were not disclosed.

    Revolgy provides digital transformation services through cloud infrastructure and online communication tools. The company’s clients include Avast, Ceska Sporitelna, Kofola, and Fincentrum.

    KSB’s team was led by Partner Drahomir Tomasuk and Lawyer Jan Beres.

  • KSB Advises Solitea on Merger of 30 Companies

    KSB has advised Solitea Holding on the internal merger of thirty companies from the Czech Republic and Slovakia into two national companies.

    Solitea is engaged in developing business, accounting, and HR solutions and has more than 260,000 customers in 15 countries. According to KSB, “the merger is primarily designed to streamline and simplify communications and administration.”

    KSB’s team included Partner Drahomir Tomasuk and Lawyers Josef Kriz, Michal Hanus, Jan Beres, and Jana Guricova.

  • Jiri Nemec Leaves BBH

    BBH has announced that long-time Partner Jiri Nemec has left the firm “to apply his talents to the business of financial investment.”

    “In twenty years of working for successful clients, leaders in the Czech and international financial and industrial sectors, I have learned a great deal about investment strategy and development,” said Nemec. “I would now like to use this unique experience and direct my skills in more independent work.”

    “While confident of Jiri’s great success in his new endeavors, we are further pleased that he will remain closely involved with the firm, added BBH Managing Partner Petr Mlejnek. “We have agreed that, in addition to his new projects, Jiri will continue to provide strategic support to BBH’s existing clients, as optimal. We recognize and appreciate that his know-how is irreplaceable.”