The amendment act to the Business Corporations Act, which entered into force at the beginning of the calendar year 2021, ensured that the profit share or a share of other own resources could be paid out by the end of the accounting period following the accounting period for which the financial statements were prepared. The profit share and a share of other own resources is determined on the basis of ordinary or extraordinary financial statements approved by the highest body of the business corporation (eg general meeting).
The above can be presented on a simple case. If the general meeting of a limited liability company approved the ordinary financial statements for the accounting period of 2020 in March 2021, a profit share or a share of other own resources may be paid out on the basis of such financial statements by the end of 2021.
The amendment act to the Business Corporations Act clarified some issues related to an earlier decision of the Supreme Court of the Czech Republic, in which the Supreme Court stated that the deadline for convening an ordinary general meeting (six months from the end of the accounting period) is, among other things, the latest deadline in which the results of the financial statements can serve as a realistic picture of the books, and only in such a period can a qualified decision be made on the distribution of profit.