The prohibition of financial assistance has been implemented into Czech law on the basis of Article 23 of the Second Directive 77/91/EEC in 1996. According to the existing Czech regulations, any joint-stock corporation or a limited liability company must not advance funds when acquiring its own shares, make loans for the purpose of acquiring its own shares, or provide security for such purposes or for other obligations relating to the acquisition of its shares. In addition, provision of such financial assistance by a subsidiary for the purposes of an acquisition of shares of its parent company is prohibited.
March 31 2007