In the Czech Republic, the duties and responsibilities of directors are codified by the following pieces of legislation:
– Act No. 89/2012 Coll., Civil Code (art. 151 – 167 for general rules)
– Act No. 90/2012 Coll., Corporations Act (especially art. 44 – 88 for general rules and art. 132 – 242 for rules governing private limited liability companies)
– Act No. 253/2008 Coll., on Certain Measures Against Money Laundering and Financing of Terrorism
– Act No. 40/2009 Coll., Criminal Code (criminal liability of directors stems from here)
– Act No. 418/2011 Coll., on criminal liability of legal entities (criminal liability of legal entities stems from here)
The director of the company plays a very important role in overseeing activities within the company, in promoting and upholding the company’s values of providing quality products and ensuring the highest levels of customer satisfaction.
As a director, you are therefore expected to give this role the due time, attention and focus that such a responsibility requires, and to exercise your judgement with due care and consideration.
A company director does not necessarily need to manage business activities within the company, ie ‘run the business’, nor do those who manage the business necessarily need to fulfil the role of director. However in order that you as a director can properly fulfil your duties in overseeing the company’s activities, it is vitally important that you have good visibility and regular access to the right management information.