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Legal and Economic Context of the Czech Civil Code Rules on Family Enterprises

Author

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  • Martin Janků

    (Department of Law and Social Sciences, Faculty of Business and Economics, Mendel University in Brno, Zemědělská 1, 613 00 Brno, Czech Republic)

Abstract

The family-run business model is in the Czech Republic not used in the scope, as it is the case of other EU Member States. Until recently one of the reasons was also the absence of a legislative framework that would give to the family business or its organization a comprehensive and systematic rules and a stable order. This has - from a part - changed since January 1st, 2014 with the entry into force of the new Czech Civil Code, Act No. 89/2012 Coll. The present paper aims at pointing out the ways, forms and the diversity of family business from business in general according to the legislation in the Civil Code introducing in its Sections 700-707 the institute of family enterprise. In the context of economic-legal analysis undertaken some aspects related to the family enterprise are highlighted, in particular the sharing of profit gains, employment of family members in the operation of the family enterprise and the continuing of operation of the family business after the death of the family member being in the legal position of the entrepreneur.

Suggested Citation

  • Martin Janků, 2017. "Legal and Economic Context of the Czech Civil Code Rules on Family Enterprises," Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, Mendel University Press, vol. 65(6), pages 1945-1951.
    • Handle: RePEc:mup:actaun:actaun_2017065061945
    DOI: 10.11118/actaun201765061945
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