The issue of the nationalization of the largest domestic energy company ČEZ is again echoing in the public space, which is happening today in connection with the bill approved by the government, which reduces the majority of shareholders’ votes required for the transfer of commercial enterprises. Partnerships. Analyst Lenka Zlámalová warned against this, and economist Pavel Kohout was outraged, calling Fiel’s cabinet a “Bolshevik government”.
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By approving a draft law that reduces the majority of shareholders’ votes required to convert commercial companies and cooperatives, the government allows 75 percent of existing shareholders’ votes instead of 90 percent of all shareholders’ votes. A general meeting shall be sufficient for the demerger of companies, while the said quorum shall increase to more than two-thirds of the share capital.
“The aim is to eliminate some interpretative ambiguities, excessive administrative burdens and to reflect some of the changes resulting from the reorganization of private law. This amendment is intended to enable joint-stock companies, whose shares are accepted for trading on a European regulated market, so that they are also in practice foreseen and regulated by the existing wording of the law.” Changes in kind can be implemented, but require the approval of all shareholders, or a highly qualified majority (typically 90%) of the votes of all shareholders of the participating companies,” said Minister of Justice Pavel Plasek (ODS) after the government meeting.
“The government responded to some of the efforts of the legislative committee of the government, which made it seem that the original proposals of our ministry were for only one company. That’s why the expansion,” Blazek said.
Analyst Lenka Zlámalová clearly reads the bill – the nationalization of ČEZ is closer than ever.
“The path to nationalization of ČEZ is open. The approval of 75 percent of the shareholders present at the general assembly meeting is sufficient. In other words, only the vote of the state,” Slamalova said on her Twitter account, approving the proposal to reduce the share of votes required for the division of companies.
The path to ČEZ nationalization is open. The approval of 75 percent of the shareholders present at the general body meeting is sufficient. It is only the voice of the government. https://t.co/UQ8iKZWKhB
— Lenka Zlamalova (@ZlamalovaLenka) May 17, 2023
Economist Pavel Kohout echoed his warning a moment later, saying he was unpleasantly shocked by the news and could not find a good word for the five-member government coalition. “They can’t be serious about this. Then we’re really being ruled by a bunch of Bolsheviks,” he added in his reaction.
They can’t be serious about this. If so, we are really ruled by a bunch of Bolsheviks. https://t.co/AARv1FPJ6q
— Pavel Kohout (@KohoutPavel) May 17, 2023
The Justice Department’s original proposal was expected to require 85 percent of the vote with two-thirds participation. In January, the Legislative Council of the Government did not recommend adopting this paragraph in response to the state’s position in the ČEZ Energy Committee.
According to Minister Blasek, this proposal responds to the adopted European directive and to the findings from practice, where it became clear for so-called listed companies, due to the fragmented structure of shareholders, to implement changes with 90 percent approval. Server reports that all stakeholders are practically impossible Kurzy.cz.
The state holds 70 percent stake in CEZ. Earlier, Prime Minister Petr Fiala (ODS) said the government was considering restructuring the company, while one of the possibilities was its division. The goal is to gain government control over energy infrastructure. The leader of the ANO opposition movement, Andrej Babiš, argued for the nationalization of ČEZ.
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