Questions and answers

Questions from our readers and clients

If   you   have   any   questions   to   our   articles   or   you   are   interested   in   something   and   wish   to   ask,      we   are   at   your   service.   Do   not   hesitate   to   contact   us   by   phone,   email   or   using   our   online form and we will reach you in short time. The questions and answers are public on this web, of course anonymously. o si mám dávať pozor pri kúpe spoločnosti?   March 2017 _________________________________________________________________________________________________________________________________________________________________________________________________________________________________________   What is the liability limit for my company for its debts if the Basic Stock is 5 000,- EUR but I actually do not have the money?      A   Limited   Liability   Company   is   responsible   for   its   liabilities   with   all   its   property   no   matter   what   the   value   of   the   Basic   Stock   is.   It   is   not   required   to   keep   up   the Basic   Stock   on   accounts   (it   is   for      accounting   purposes   and   is   legally   irrelevant),   because   for   breaking   the   commitments   the   company   is   liable   up   to   the   value   of its   real   property-   so      everything   it   owns.      Many   entrepreneurs   are   afraid   to   raise   their   Basic   Stock   for   fear   of      having   higher   liabilities,,   but   this   is   not   true.   The liability of the company depends on its real property, not on the amount of the Basic capital registered in the Companies Register.   March 2017 _________________________________________________________________________________________________________________________________________________________________________________________________________________________________________   I am planning to sell my business share in a Slovak company. Am I obliged to have my wife´s consent?     Nowhere   in   the   law   is   it   explicitly   stated   that   a   business   share   is   a   part   of   the   marital   property   (BSM),   and   even   the   Slovak   jurisdiction   is   not   consistent   n   that     case   (eg.      the   resolution   of   the   Constitutional   Court   of   18.      August   2015,   file   mark         III         CC.   399/2016-16).      According   to   article   145   of   the   Civil   Code   concerning the   matters   included   in   the   BSM   (marital   property)   ,   common   issues   can   be   handled   by   both   spouses   without   the   need   for   the   consent   of   the   other   spouse   ,   in other      more   serious   'cases   the   consent   of   the   other   spouse   is   required.      However,   based   on   section   114   and   section   115   of   the   Commercial   Code,   which regulates   the   joint   shareholding,   it   states   that   the   business   share   of   one   of   the   spouses   does   not   belong   in   this   definition.      Therefore,   in   our   opinion,   the business   share   is   not   a   part   of   BSM   (common   marital   property)   and   in   case   of   transferring,   the   consent   of   the   other   spouse   is   not   necessary.      In   practice,   such   a document as an appendix with  the proposed changed in registration in the Company Register is even not required.     February 2017 ______________________________________________________________________________________________________________________________________________________________________________________________________________________________________   How do I announce  the change of  my name to the Company Register?     When   there   is   a   change   in   one´s   name,   e.g.   surname   after   marriage         ,   it   is   necessary   to   update   the   personal   data   entered   in   the   Commercial   Register   . However,   it   is   not   necessary   to   hand   in   documents   or   identification   cards,   but   according   to   §   4,   chapter   5   of   Regulation   no.   25/2004         C.L.,   it   is   enough   to   provide a notorized document with details of the proposed  change. The signature must also be notarized.   February 2017 ______________________________________________________________________________________________________________________________________________________________________________________________________________________________________   How do I , as an executive, withdraw money from the trading company?   As the executive of a company, there are several options available to you: You   can   also   be   an   employee   of   a   company   and   therefore   have   a   salary   as   well   as   other   benefits   (for   example,   luncheon   vouchers   ).However   ,   it   is necessary to be careful with the employment contract- if the work position fills all the duties of executives, it can be classified as invalid. You have the right to sign a managerial contract and draw compensation, in which the amount and frequency of payments you can set as you desire. Unless   the   executive   is   the   owner   of   rights   on   intellectual   property   (eg.   Copyright,   design,   labelling   of   goods   and   services,   trademark),   he   may   enter   into   a license agreement with the company or receive compensation for the creation of this work. The   first   three   alternatives   relate   to   the   executive   of   a   limited   Liability   Company,   but   a   member   of   the   Board   of   Directors   has   the   additional   right   to payments from dividends.   February 2017 ______________________________________________________________________________________________________________________________________________________________________________________________________________________________________   What can I do  if I disagree with the resolution of the General Assembly?     In   the   case   of   disagreement   with   the   resolution   of   the   General   Assembly   in   Ltd.,   considering   that   it   is   a   conflict   with   the   law,   the   Memorandum   or   Articles   of Association,   you   have   the   opportunity   to   appeal   to   a   court.   This   right   will   remain   even   if   you   are   not   a   current   partner,   but   the   decision   of   the   GA   still   applies   to you.   However,   there   are   conditions   that   must   be   met:   a   court   appeal   is   required   to   be   lodged   within   three   months   from   the   adoption   of   a   resolution,   and   you can only challenge a decision restricting your rights. Until the decision of the court is issued, the resolution of the GA will be considered valid.     January 2017 ______________________________________________________________________________________________________________________________________________________________________________________________________________________________________   Under what conditions can a foreign entity become a partner in a Slovak  limited liability company (or another company)?     Foreigners   have   the   same   right   to   establish   a   company   in   Slovakia   as   Slovak   citizens.   This   applies   to   natural   persons   as   well   as   to   legal   entities.   The   difference is in the administrative requirements for a foreigner: A   natural   person   needs   to   present   a   valid   identity   card   or   similar   document.   If   he      intends   to   act   in   the   function   of   executive   manager   of   the   company,   he is   obliged   to   submit   an   abstract   from   the   Criminal   Records   division   from   his   home      country   with   an   official   translation   into   Slovak   language,   not   older   than three months from the date of its issue. A   trading   company   (the   most   common   type   of   legal   entity)   is   obliged   to   submit   a   document   of   its   establishment   and   a   document   verifying   its   current existence (it can be an Abstract from the Companies Register, certificate of continuous business activity , etc.) If   acting   on   behalf   of   another   person,      the   power   of   attorney   must   also   be   submitted.   The   above   documents   must   clearly   define   who   is   the   director   of   the company, its shareholders, where it is established (the seat) and its Basic Stock (Basic Capital? Net worth?). If   such   data   are   absent   from   these   documents,   it   is   necessary   to   attach   an   appendix   where   the   missing   items      are   stated.   In   some   cases   the   documents may have to bear an Apostille Certificate under the Hague Convention. Certainly, all documents must be submitted with the official translation.    January 2017 ______________________________________________________________________________________________________________________________________________________________________________________________________________________________________     When   establishing   a   Simple   Joint   Stock   company   it   is   necessary   to   be   registered   in   a   central   securities   depository?      If   so,      how   much   is   paid   for   the   issue and custody of stocks?     Shares         of   a   Simple   Joint   Stock   company   may   be   issued   in   registered   form   only,   and   therefore      only   in   the   form   of   registration   in   the   Central   Depository   of securities   in   the   Slovak   Republic      (hereinafter   "CDCP").   The   established         company   is   obliged   to   have   ,   as   issuer   of   the   securities,   an   assigned   ISIN   code,   and   then it   must   sign   a   contract   upon   registration   of   issue   with   CDCP   ,   upon   which   the   CDCP   shall   register   the   issue   of   securities,   and   those   shall   be   credited   to   the owner´s   account.   These   acts   provided   by   CDCP   are   charged   according   to   the   current   price   list,      from   the   date   11.01.2017   it   means   130,   -   EUR   for   the   allocation of   ISIN   code   and   165,   -   EUR   for   the   establishment   of   a   register   of   the   issuer,   while   the   fees   are   applied   also   to   report   any   change   in   the   issuer's   data,   as   well   in the amount of 165, - EUR. Furthermore, there is a charge for   issuing  the securities, starting at 66-EUR, depending on the volume.   January 2017 ______________________________________________________________________________________________________________________________________________________________________________________________________________________________________     I   am   an   executive      and      a   sole   shareholder   in   an   Ltd.   company,   which   has   run   into   some   problems   which   I   must   solve..   Can   I   get   rid   of   this   responsibility   by selling the company?     It   depends   on   what   specific   problems   your   company   has   to   deal   with   -   whether   they   were   caused   by   the   breach   of   your   duties   as   an   executive,   duties   of     partners,   third   parties   or   for   other   reasons,   for   example      breach   of   contractual   relations   ...   Generally   speaking,   the   managing   executive   is   not   relieved   of   his     responsibility   by   selling   the   company   and   thus   by      discharging   its   functions.   Even   you   have   sold   your   company,   you   are   responsible         for   loss   caused   by breaching   your   obligations   during   the   period   when   you   were   a   managing   executive   -   regardless   of   whether   you   have   violated   your   duties   intentionally   or   merely negligently.   December 2016 ____________________________________________________________________________________________________________________________________________________________________________________________________________________________________   As soon as possible I might need a limited liability company. Should I set up a completely new one or would it be better to buy a Ready-made Ltd.?     We   definitely   recommend   that   you      set   up   a   new   company   for   the   following   reasons:the   cost   is   about   the   same,,   but   when   buying   an   already   established   Ltd. you   never   have   a   guaranteed   company   history.   Thereby   there   is   a   risk   that   at   anytime   some   problems   may   occur   caused   by   former   executives   or         partners   that will   at   least   make   your   business   unpleasant   or   even   impossible.   Moreover,   a   company   established   after   1.1.2017   will   no   longer   pay   the   tax   license,   while   the older companies are still obliged to pay it for one year. Update: 16.08.2017A
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