Clifford Chance

Directors' contracts – clarity at long last

22 May 2018

In its April 2018 judgment in the MIDESTA case, the Grand Chamber of the Czech Supreme Court reversed its long-held – and rather notorious - view on the interplay between corporate and employment law in the field of contracts governing the terms of office of directors of Czech corporations. The issue, known on the local market colloquially as "concurrency of positions", has haunted Czech companies and their directors for many years, and has been subject to a number of twists and turns in both statutory and case law.

It seems now, that at long last, the story might finally be over, with the MIDESTA judgment bringing both clarity and practical workability to Czech corporate practice.

Download PDF