Securing Companies in Specific Cases of Real Estate Acquisition

Abstract

The article presents the fundamental principles of purchasing real estate by capital companies as part of business transactions (based on civil law contracts) and the purchase of real estate by a capital company from a member of its management board. The acquisition of immovable property by a capital company is indisputably one of the relevant events for every company, so in principle, it requires, to be valid, a resolution of the general meeting of shareholders of the company and, therefore, a resolution of the company’s ‘ownership’ body, which is competent to decide on the most important matters for the capital company, unless the articles of association or articles of association expressly provide otherwise. In each case of purchasing real estate by a company, it should be recommended first to conduct a survey of the condition of the property and prepare a due diligence report regarding the property, which will allow showing the real image of the property to the shareholders of the company but will also be an expression of due diligence duty by the management board of the company purchasing the property.