Česky

Anticorruption barometer


Update history

Transparent and effective public investment — #119 Proving of ownership structures of foreign companies with paper shares

Foreign companies with certificated bearer shares that want to receive public funds from the Czech taxpayer, whether directly or indirectly, should be obliged to deposit their stock certificates in custody order to credibly prove their ownership structure.

Justification and sources

Selected update

Updated: 10/2015 Parameter update history

Effectiveness:
25%
Progression:
60%
The law proposal is in the Lower Chamber

The proposal of Act on public procurement, which is in the Lower Chamber of the Parliament, nor the proposal of law amending the Act on public registers in conjunction with the proposal of law amending the Act against money laundering, which are in the Government, do not deal with the issue of proving of ownership structures of companies to the state. However, since the proposal of law amending the Act on public registers foresees the disclosure of ultimate beneficial owners, it will have to resolve the issue of disclosure of the related ownership structures; otherwise it will not be possible to prove that the declared ultimate beneficial owners – of both Czech and foreign companies, are indeed their real ultimate beneficial owners.

Compared to current state

Updated: 10/2016 Parameter update history

Effectiveness:
25%
Progression:
90%
The law is in force

The proposal of the Act on public procurement which entered into force concerns also foreign companies, however, it does not deal with the issue of proving of corporate ownership structures of selected contractors which are foreign companies, it requires from them only a declaration on direct shareholders with interest above 10 %.