Time to Prepare for the Modernized Company Law: Where Should Businesses Start?

According to Maksimas Saveljevas, attorney at the law firm Rödl & Partner, the upcoming changes will allow companies to respond more quickly to investment or expansion opportunities and avoid repeated shareholder meetings and decisions.

“The conditions for exercising these new rights should be clearly set out in the company’s Articles of Association,” – emphasizes Saveljevas.

He recommends that businesses start now by assessing whether their operational and founding documents comply with the new legal framework.

Saveljevas notes that it is worth checking whether the company’s statutes include the possibility of paying dividends for a period shorter than a full financial year.

According to him, it would also be reasonable to authorize the board or the manager to decide on share capital increases, to regulate the issuance and redemption of redeemable shares, and to establish newly defined reserves (such as a redeemable shares reserve).

“It is also important to review the deadlines stated in the Articles of Association for convening the annual general meeting of shareholders — if the period is shorter than five months, it’s advisable to extend it,” – advises Saveljevas.

He adds that properly adapting these changes within corporate documents will bring greater legal clarity, enabling faster capital raising or dividend distribution, and ultimately strengthening a company’s competitiveness and attractiveness to investors.​​​​​​​​​