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According to a recent ruling of the High Court in Olomouc, shares in company profits may only be distributed among persons other than the partners (e.g. employees), if this is expressly permitted by the Memorandum of Association. It is therefore not sufficient to for instance include such provisions in a collective agreement or other contract entered into between the company and its employees (or other persons), unless the provision is subsequently reflected in the actual text of the Memorandum of Association. The common provision of the Memorandum of Association, which stipulates the distribution of profits be decided by the highest body of the company under the conditions set out by binding legislation, is in such cases not sufficient. In order to prevent any possible disputes we therefore recommend that on concluding similar contracts one must take in mind that any agreed-upon distribution of profits between further persons must be explicitly written into the Memorandum of Association. This conclusion is applicable to limited liability companies as well as joint-stock companies.