Incorrect entry in the securities register

The list is exhaustive. The central depository must correct or supplement its records on the basis of an objection by the holder of a holder's account, a member, a stock exchange or an issuer that it finds justified, and also on the basis of a final court decision (§ 108(1) of Act No. 566/2001 Z. z.). In particular, an issuer's justified objection also requires the depository to correct a member's records and inform the member without delay.

Because it determines who owned the securities when ownership mattered. The law is clear: the depository must, in translation, *'make the correction as at the date the incorrect entry was made, and the supplementation as at the date the omission arose'* (§ 108(1) of Act No. 566/2001 Z. z.). The correction therefore operates retrospectively, affecting entitlement to a dividend paid in the meantime, the validity of voting at a general meeting and the parties' positions in a disputed transfer.

The depository decides within a reasonable period depending on the complexity of the case, but no later than 60 calendar days after receiving the objection. The period starts on the first working day following receipt. One detail matters: if the depository requests additional information, the period stops and starts afresh, rather than continuing, when the additional information is received. An incomplete submission can therefore extend the process by another two months.

It must be legible and comprehensible and identify the person filing it — for an individual, their first name, surname, birth number and permanent address; for a legal entity, its business name, company identification number and registered office. It must identify the alleged incorrect or incomplete entry, describe the circumstances in which the error arose and contain a precise request for correction or supplementation. It must be dated and bear an officially certified signature. A legal entity attaches a commercial register extract no more than three months old on the date of signature, and the objection must include originals or certified copies of all relevant documents.

The depository promptly requests the missing information in writing and explains the consequences. If you still fail to provide the required particulars or documents, it need not carry out further checks or investigate whether the objection is justified where it cannot properly investigate without your cooperation. The same applies if you refuse to cooperate. This is why we submit a complete objection at the outset.

Yes. The law expressly addresses liability and distinguishes who caused the error. Anyone who, in translation, *'submitted an instruction without entitlement or gave it incorrectly, incompletely or late is liable for the damage thereby caused'* (§ 108(6)). If the central depository or a member records an instruction incorrectly or late, it is liable for damage to persons whose accounts it maintains (§ 108(7)); the depository is also liable to issuers whose registers it maintains (§ 108(8)). A damages claim is pursued separately from the objection procedure.

Court proceedings remain available. The depository must also correct or supplement its records on the basis of a final court decision, regardless of how it decided the objection. The objection procedure is therefore a faster and less expensive option worth trying first, but it is not the only one. When assessing the matter, we explain our realistic view of the prospects of both routes.