The liability of members of statutory bodies is a persistent and complex issue under Czech law. At EQUITY LEGAL, we have provided comprehensive legal representation to former members of a housing co-operative’s governing bodies who face allegations that they sold the co-operative’s property for a price allegedly below market value. This case presents a professional challenge for us, as it is being conducted simultaneously on two fronts — in civil proceedings (where a claim for damages is being pursued) and in criminal proceedings.
The uniqueness of the entire dispute lies in the fact that the claim was brought as a so-called derivative action (a shareholder’s or cooperative member’s claim brought by a member on behalf of the corporation). This issue has not yet been sufficiently addressed in current Czech case law. In essence, we are therefore encountering a whole range of fundamental legal questions which as yet have no clear answer in the courts’ case law.
Our role in this case goes beyond standard legal representation. By developing arguments in legal areas where the law has not yet been settled, we are directly helping to shape the future interpretation of the law. Resolving these issues will be of key importance to how Czech courts approach derivative actions and the liability of elected bodies in housing co-operatives in the future.
This case confirms that at EQUITY LEGAL we are not afraid to venture into uncharted waters. Where clear case law is lacking, we apply precise analytical thinking, in-depth knowledge of corporate and criminal law, and the courage to put forward arguments that push the boundaries of legal practice.