Investment regulation - Czech Republic

25.03.2013

Holding restrictions

ThresholdRestriction/requirement
Bank Shares InvestmentAcquisition crossing 10%, 20%, 30% or 50% threshold of voting rightsSecure approval from the CNB prior to the acquisition.
Non-compliance would result in the loss of voting rights, rights to call an EGM and the right to challenge the validity of actions taken at a general meeting.
Decrease crossing 10%, 20%, 30% or 50% threshold of voting rightsNotify the CNB without delay.
Where the limits are exceeded due to the transfer of title, the person with the share in question shall notify the CNB of this fact without delay.
Investment Fund and Companies Shares InvestmentAcquisition crossing 10%, 20%, 30% or 50% threshold of voting rights or share capitalAs per the Act on Collective Investment (No. 189/2004, Coll.) secure prior consent from the CNB.
Non-compliance would result in the loss of voting rights and may lead to the CNB imposing financial penalties on the investor.
Decreased share of voting rights or share capital crossing 10%, 20%, 30% or 50% thresholdNotify the CNB without delay.
Non-compliance would result in the loss of voting rights.
Insurance Shares InvestmentAcquisition of 10%, 20%, 30% or 50% of voting rights
or
Decreased share of voting rights crossing 10%, 20%, 30% or 50 threshold		As per the Insurance Act No. 363/1999 Coll., as amended, apply for prior approval from the CNB.
Notify the CNB in writing 30 days before the fact.
Non-compliance would result in the loss of voting rights.
Listed shares - mandatory takeover bidAcquisition of 30%, and 90% of the voting rights in the form of listed shares or convertible securities to obtain such shares (if applicable)-A mandatory takeover bid to purchase the outstanding listed shares within 30 days after the day when the shareholder(s) acquires or exceeds any of the said holdings must be made.
The countervalue (remuneration) for the securities must:
- be paid in cash or in other securities or a combination of both;
- be at least equal to the highest price, that is, the premium price for which the shareholder(s) bought the securities in the period of 12 months before the bid;
- be at least equal to the weighted average of prices for which the securities were traded in the regulated market in the period of six months before the bid if the premium price cannot be set;
- be approved by the CNB.
Broker dealers (nonbanks) Shares InvestmentAcquisition crossing 10%, 20%, 30% or 50% threshold of voting rights or share capitalSecure approval from the CNB prior to the acquisition.
Non-compliance would result in the loss of voting rights, rights to call an EGM and the right to challenge the validity of actions taken at a general meeting.
Decrease crossing 10%, 20%, 30% or 50% threshold of voting rights or share capitalNotify the CNB without delay.
Where the limits are exceeded due to the transfer of title, the person with the share in question shall notify the CNB of this fact without delay.

Disclosure requirements

For details of the local domestic disclosure requirements, please refer to the Disclosure Requirements.

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