The Origin of the Company:

A company called “Malá Šárka Homeowners Association a.s.”, registered office Tržiště 13, Praha 1, (hereinafter called “MŠHA a.s.”), was founded in 1996 with a purpose to continue with the precinct administration. The main object was a complex development of the Průhonský háj area, which meant:

  1. development contribution to technical infrastructure (mainly water and energy supply, rainwater and sewerage drains, providing telecommunication connection and security services)
  2. providing sustained and coordinated maintenance of technical infrastructure and communal areas
  3. ensuring the basic principles of the “Malá Šárka” project comply with the approved area and planning permissions and construction documentation.
  4. contribution to reaching the common aims and interests of the current and future owners of the lots of lands and dwellings in the Malá Šárka Precinct and to protect the housing and living qualities.

The first construction phase was finished and the first inhabitants moved in 1996 and the whole development was completed in 2000.

The Company Shares are solely allocated to the individual or a company who owns a property within the Malá Šárka Precinct. The ownership of such a property and shares is indivisible and this indivisibility is embedded in the “MŠAH a.s.”  Statutes and internal Organizational Standards.

The capital stock of the Company was comprised partly by a financial investment and partly by nonmonetary investments – i.e. lots of land, infrastructure network which was built on behalf of “MŠAH a.s.” (sewerage drains, water, gas and electricity mains, telephone lines), as presented and evaluated by expert’s statement no. 631/96, from 20th May 1996, prepared by Doc. Ing. František Čihák, CSc.

The capital stock of the Company “MŠAH a.s.” was distributed on 77,610 pieces inscribed shares with the nominal value of each share amounted to CZK 2163.

Shares of the Company are securities, to which relates shareholder’s rights to participate in conformity with legal regulations and Statutes in the Company management, in its eventual profit and liquidation balance in case of the Company dissolution. Shares of the Company are indivisible. Shares of the Company have form and appropriateness of documentary securities and are not publicly tradable.

A decision to fundamentally change the concept and operation of “MŠAH a.s.” was made in 2000. To follow this trend the General Assembly Meeting decided in August 2000 to :

  1. change the scope of the Company from  entrepreneurial to nonprofit one – to change the subject of business from movable and immovable assets property management and trade to intermediating services by purchasing them and selling them not-for-profit to those of its shareholders, who have entered into a relevant contract with the Company.
  2. aim the Company’s activity at mediating services to ensure the set high level of environmental culture, living quality and the protection of persons and property
  3. voluntary convey roads and selected infrastructure to the property and management of Prague Capital City Council and as a result of this convey to decrease the capital stock and the nominal value of a share, to project these changes into amended Statutes, contractual relations, administration and property management and herewith to optimize the “MŠAH a.s.” activity to decrease its permanently growing costs

In 2001 is the company Malá Šárka Homeowners Association a.s. renamed to Malá Šárka a.s. (hereinafter called „MŠ a.s.“), registered office Nad Markytou 728, PSČ 164 00 Praha 6, IČ: 25059777, with the Company’s scope of business as Service Intermediation

The Company intermediates services by purchasing them and selling them not-for-profit to those of its shareholders, who have entered into a relevant contract with the Company. The type, extent, frequency of provided services and service charges, which ensure the non-profitable management, are approved by the General Assembly in accordance with the Company’s Statuses.

During 2002, in accordance with the 7th General Assembly Meeting, the Board of Directors completed roads and selected infrastructure convey to Prague Capital City Council except the noise barrier, which the Council Representative rejected to take over. Subsequently these changes were recorded at the Cadastre of Real Estate. The Board of Directors further proceeded with decreasing the Capital Stock and decreasing the nominal value of a Share, and furthermore ensuring the set level of environmental culture and living quality. Especially the park re-cultivation was very successful without any negative influence on the shareholders’ service charges.

Subsequently in 2004 the General Assembly Meeting approved the decrease of the Capital Stock.

The reason for the decrease was financial backing of the loss shown in the 2002 financial closing as a result of voluntary conveyance of a part of the Company’s asset (roads and infrastructure without the noise barrier) to the Prague Capital City Council according to the gift covenant from 25. February 2002 No. DAN/23/07/000495/2002. The Capital Stock was decreased by reducing the nominal value of each share. The capital stock of the Company was distributed on 77,926 pieces common shares, the nominal value of each share amounts to CZK431.50. New shares were printed and interchanged. There is no foreign capital in the Company.