Protecting Minority Shareholders in Close Corporations: Modeling Czech Investor Protections on German and United States Law

Abstract

Privatization in the Czech Republic has opened the door to foreign investment. Investors, however, have been slow to invest in the Czech Republic because of its relatively weak shareholder protections. This Note analyzes the shareholder protections in the Czech Republic and suggests changes to the Czech Commercial Code based on German and United States protections for minority shareholders. Implementation of broader shareholder protections will perhaps increase confidence in the Czech Republic and stimulate foreign investment.