Glossary of terms

Share (usually money) that belongs to the partner whose participation in the company expired, or expired to his heirs or other successors (excluded for JSC). The company must draw up interim, regular or extraordinary financial statements as of the date of termination of the participation of this partner in the company. The settlement amount is calculated by the equity (if the social contract does not stipulate that a check of the net assets shall be based on expert opinion), the share is payable 3 months after approval of the financial Statements (or receipt of the expert's report to the company) - if companions or body do not approve the financial statements without a serious reason, the settlement is paid in the same period.

Share is a security stating that the owner put a capital to the joint-stock company. A security which gives shareholders the right to participate in the management of a joint stock company, in its profits and in the liquidation balance upon the dissolution of the company, and the pre-emptive right to newly issued shares, in accordance with the Commercial Code and the Articles of Association.

Share capital is basic assets of the company, which must be expressed in Czech  currency and the amount of which varies depending on the type of company. The share capital consists of the founder's deposits (cash, respectively expressible by money) or during the operation of other deposits by their owner.

The creation of share capital is mandatory by law for limited partnership, for limited liability company (minimum 1, - CZK) and for joint-stock company (the minimum amount of 2,000,000 CZK without a public offering or at least CZK 20 million with public offering of shares).

Stock warrant is a security replacing temporarily share. Security replacement share when the Company increased the share capital by subscription of new shares, the underwriter fully repay the issue price of shares subscribed, but the capital increase has not yet been entered in the Commercial Register.

The supervisory Board is the supervisory body of the company with controlling powers.

It is a collective body with at least 3 members who elect a chairman from among their members (The number of members must be divisible by 3). Membership in the Supervisory Board is incompatible with the membership in the Board of Directors, clerk or a person authorized to act on behalf of the JSC. Members are elected for a term according to the statutes, for a maximum of 5 years (the first term of office is one year from the creation).