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Regulation of business organizations in the new Civil Code The new Civil Code, effective from 15 March 2014 will contain the rules on legal entities. The new Civil Code operates with a logical system summarizing the general rules applicable to all legal entities first, then the common rules of business organizations followed by the rules on each company form. Please note, that the rules of the new Civil Code on legal entities are dispositive, meaning that deviation from the sections of the Code in the founding document of the legal entity is allowed. Deviation is prohibited if the Code forbids it, if it jeopardizes the rights of the creditors, employees, and the minority, or if the control over the lawful operation of the organization is hindered by it. Consequently in the course of answering a company law question in the future, the founding document, the rules on the company form, the common rules and the general rules shall parallel be taken into account. |
