Czech parliament group recommends dropping part of company transformations bill

Czech parliament group recommends dropping part of company transformations bill

A Czech parliamentary committee on Wednesday recommended dropping contested passages of a proposed bill that critics say would make it easier for the government to fully take over parts of power utility CEZ, a ruling party lawmaker said.

The recommendation touches on a proposed reduction in the majority of shareholders necessary in company transformations.

The government last year proposed lowering the quorum needed to agree public company splits where stock in successor firms would be distributed unevenly between shareholders.

The proposed change, part of a wider bill that otherwise deals with transposing EU legislation, has drawn investor criticism and weighed on shares in CEZ, which is 70% state-owned.

Deputy Karel Haas from the ruling Civic Democrats, who was in charge of introducing the bill, said the lower house's Constitutional and Legal Committee supported deleting the contested paragraphs.

The bill is still to head to lawmakers for a final vote. Parliament had given initial approval to it in August, although debate over the contested changes has held it up in committee.

The contested changes would make it easier for the government to fully take over parts of energy powerhouse CEZ, a plan under consideration since Russia's full-scale invasion of Ukraine in 2022 led to a spike in energy prices.