Important amendment to the Civil Code

A draft act was included in the order of proceedings at the meeting of the Senate on 18.3.2020 which will change the provisions of the Civil Code, the Act on Business Corporations, and other laws. The amendment in question will lead to a long-awaited amendment to the provisions of Section 1124 and 1125, concerning the pre-emptive right of co-owners. Co-owners will now only have the pre-emptive right in the event that co-ownership was established by way of acquisition for the case of death or other legal fact such that the co-owners were unable to influence their rights and obligations from the very beginning. The amendment has no influence on the existence of pre-emptive rights that were established prior to the effective date of the amendment (this is expected to be 1.7.2020). The conditions of joint ownership of housing will also change in the Civil Code and the legal regime of cooperatives will be changed significantly in the Act on Business Corporations. Please contact us for more information.