The Supreme Court's judgment in May, Case No. 27 Cdo 3549/2020, was literally ground-breaking. According to the judgment, the definition of the company's object of business as production, trade and services not listed in Annexes 1 to 3 of the Trade Licensing Act does not meet the requirement of certainty. It follows that companies with such a defined object of business should modify and specify their articles of association in this sense.
Moreover, the Supreme Court has expressly stated that it is the task of the shareholders to precisely define the object of the business, regardless of the classification under the specific range of activities listed in Annex 4 to the Trade Licensing Act. The classification under the relevant range of activities is already a matter for the Trade Office. However, most existing companies have this "vague" designation in their articles of association. It is therefore unlikely that the registry courts will start to enforce this controversial decision of the Supreme Court across the board. However, in the event that the registry court calls for a remedy, it is necessary to act and amend the articles of association by way of a notarial deed, otherwise the company risks a fine or, in the extreme case, dissolution.