Business briefs

Heads of companies whose securities are traded on the Czech capital markets will have to make public their remunerations; MP Lubomir Zaoralek has been given responsibility for drawing up a recommended code of conduct for legislators; SachsenFonds buys four office blocks for EUR 125 million; Employment agencies no longer allowed to contract out students for short-term project-based work.

Business briefs

New reporting requirements for publicly listed companies

Heads of companies whose securities are traded on the Czech capital markets will have to make public their remunerations under the new capital market business law. As of this year, annual reports must list the salaries of company directors. The measure, based on U.S. law, is designed to prevent managers of firms on the verge of bankruptcy from paying themselves hefty remunerations.

Zaoralek tasked with drafting Code of Conduct for MPs

Lubomir Zaoralek, photo: CTK

The speaker of the lower house of Parliament, Lubomir Zaoralek, has been given responsibility for drawing up a recommended code of conduct for MPs. He was quoted as saying that such guidelines would be beneficial as politicians have differing standards as to what constitutes corruption and what MPs can and cannot accept in terms of gifts or favours from lobbyists and business interests. The goal is to put an end to the "buying" of votes. The measure comes in the midst of an alleged attempt to bribe an MP in the governing coalition by the main opposition Civic Democrats into a vote of no confidence in the government.

Biggest deal to date on the Czech office space market

The biggest deal to date on the Czech office space market was announced this week: The German investment company SachsenFonds bought four office blocks in Prague's BB Centre for EUR 125 million — that's nearly 4 billion crowns. The U.K.-based property services firm Jones Lang LaSalle advised the German investor in the purchase of 54,000 square metres of office space, which was put up for sale by the European fund Heitman. The four buildings in Prague 4 are now leased by the companies Eurotel, GE Capital Bank and Hewlett-Packard.

New restrictions on project-based work placed on employment agencies

Employment agencies that have specialised in providing students for short-term work assignments will no longer be allowed to sign project-based work contracts with the students. The aim is to close a tax loophole which allowed the agencies to avoid paying social taxes on the students. Companies will, however, still be able to sign such project-based contracts directly with short-term workers.