Publication details
Problems with the transparency of bearer shares in the Czech Republic
| Authors | |
|---|---|
| Year of publication | 2013 |
| Type | Article in Periodical |
| Magazine / Source | World Academy of Science, Engineering and Technology |
| MU Faculty or unit | |
| Citation | |
| Field | Economy |
| Keywords | paper shares book-entry shares trading corporations |
| Attached files | |
| Description | With the adoption of the new Civil Code and Trading Corporations Act, the Czech Republic is joining the trend which is seeing the liberalisation of the regulation of trading corporations. The new law relaxes the conditions governing business and the efficient management of trading corporations, and also provides adequate protection for the interests of creditors, minority shareholders, consumers, etc. [1]. Some of the many important, if not revolutionary, changes will be made in the field of securities and the rights of joint stock companies. However, doubts have been raised as to whether bearer shares in paper form may be left without further regulation and whether the absolute anonymity of shareholders structures may be permitted. The existence of anonymous ownership of joint stock companies carries the risk of an non-transparent environment in which corruption is rife. A non-transparent environment in joint stock companies may increase the risk that proceeds from crime may be legalised through such joint stock companies. Wholly anonymous shareholder structures are also seen as a problem due to the risk of circumvention of the law governing conflicts of interests, particularly in relation to public contracts, subsidies, etc. |