Government Decree No. 10 / 1949 Coll.

Regulation implementing the Act on municipal enterprises and issuing their statutes (municipal enterprise statute)

Valid Effective from 29.01.1949
10.
Government Regulation
of 18 January 1949
implementing the Act on municipal enterprises and issuing their status (municipal enterprise status).
The Government of the Czechoslovak Republic orders pursuant to § 2, § 2, § 19, § 4 and § 30 of the Act of 21 July 1948, No 199 Coll., on municipal enterprises (hereinafter referred to as "the Act"):

Část první.

Initial provision.
The legal nature of municipal enterprises.
§ 1.
(1) Community undertakings are the organisational departments of public management for the business activities of the associations of the People's Administration. They are legal entities organised in a form similar to national undertakings (Section 156 of the Constitution).
(2) Communal undertakings are national property in the hands of the volumes of the People's Administration (in the municipal ownership of municipalities, counties or counties pursuant to § 149 (2) of the Constitution).
§ 2.
The communal undertakings are to expand and deepen the public economy in those sectors, sectors and sectors of business which, because of their nature, are of less scope or of limited local importance, are better suited to be operated in the context of the management of the ties of the people's administration, and are organically complementary to the mission of national undertakings in the economic establishment of the State. They shall serve the needs of the population of the administrative unit concerned in accordance with the economic interests of the national and provide income to the associations of the people's administration.
§ 3.
General principles for the management of municipal enterprises.
(1) Communal undertakings must either be guided by the principles of business, unless this is excluded because of the public interest to which the undertaking serves (§ 19 (1) of the Act). Maintaining the principles of business conduct should take into account the interests and needs of the population of the territory concerned and in accordance with the single economic plan.
(2) The operation of municipal undertakings in accordance with the principles of business business must not prejudice the performance of administrative tasks imposed on national committees.

Část druhá.

Organisation of municipal enterprises.

DÍL I.

Property for the establishment of municipal enterprises.
(K § § 2 to 6 of the Act.)

Oddíl 1.

Types of property.
§ 4.
Community undertakings may be set up:
(a) the property (property) of the concerned union of the People's Administration, which it has or will acquire in any way (purchase, exchange, expropriation, assignment of confiscated property, gift, etc.);
(b) the nationalised property (nationalised property) of a delegated public administration undertaking under the nationalisation rules; and
(c) the assets (assets) of other entities dedicated directly to the establishment of a municipal undertaking.

Oddíl 2.

The establishment of communal enterprises from the property of the ties of the People's Administration.
§ 5.
Property distribution.
The property of the People's Administration is divided into:
(a) company property,
(b) administrative assets; and
(c) assets of a mixed nature.
§ 6.
Business property.
(1) The property (set of assets) which is not intended to be performed by the national committee shall be considered as assets of the company,
(a) is a means of economic business (production, trade, provision of services);
(b) serve to achieve profit; and
(c) constitute an economic unit.
(2) In particular, their business enterprises (e.g. hotels, restaurants, cafés, pubs, bricks, quarries, sandmills, saws, construction companies, funeral homes, craft companies, factories, transport companies, commercial enterprises, poster companies) and similar undertakings serving their own needs are regarded as corporate property of the unions of the People's Administration.
§ 7.
Administrative property.
The legal property is property of a union of the People's Administration, which is directly designed to perform administrative tasks such as office buildings of the National Committee and their facilities, means of transport serving the needs of the Office, Library, School buildings, School playground, social care facilities (crèches, shelters, homes, recovery facilities), public goods (squares, streets, roads, bridges) and water buildings (retention tanks, hedges).
§ 8.
Property of mixed nature.
(1) The joint nature of the property is that of a union of the People's Administration, whereby the National Committee also performs administrative tasks in addition to business activities. They are usually enterprises, institutes or plants designed to serve the needs of the whole, but where the interest in profit is not entirely excluded, such as the Purge, Swimming, Public Water, Crematorium, City Cleaning, Market and incinerators.
(2) Property assets, which usually appear to be administrative in the volumes of the people's administration, may appear to be mixed in the context of a more complex economic organisation in a volume of the people's administration (e.g. cemeteries, maintenance facilities for roads, bridges, orchards, water-based buildings, school gardens and playgrounds, sewage treatment stations and public bridges).
§ 9.
Proposals for the establishment of a municipal enterprise from the property of the People's Administration.
(1) Where no derogation is provided for in paragraphs 2 and 3, either a municipal undertaking shall be set up from a corporate property already owned by a public administration within 60 days of the date of publication of this Regulation. From the assets of the public administration to which this Regulation shall apply, either a municipal undertaking shall be set up or, in the case of such assets, incorporated into the municipal undertaking within 60 days of the date of acquisition.
(2) According to Article 32 of the Act, agricultural and forestry undertakings (land) do not apply. In case of doubt, the Ministry of the Interior shall decide whether it is such an undertaking (land) in agreement with the Ministry of Agriculture at the request of the concerned association of the People's Administration, on the initiative of the Supervisory National Committee or on its own initiative.
(3) The law excludes small-scale corporate property which, whether in itself or in connection with other assets, is not eligible to be managed as a municipal enterprise. In doubt, the National Supervisory Committee (Office) shall decide, at the request of the National Committee concerned, on an ex officio basis pursuant to § 7, § 2 or 3 of the Act.
(4) Property of a mixed nature, to which the national committee also performs public administration tasks in addition to business activities, can be managed in the form of a municipal undertaking,
(a) if there is an undertaking where the business activity and the interest in profits prevail; or
(b) if it is an undertaking, an institution or an establishment which, due to its task, can be operated economically in the form of a municipal undertaking.
(5) The consent of the Ministry of the Interior is required to manage assets of a mixed nature in the form of a municipal enterprise. The Ministry of the Interior may, in agreement with the Ministry of Finance, give such approval for certain types of property by a mass decree in the Official Journal.
(6) From administrative assets do not be created by municipal enterprises. Administrative property may be incorporated into a municipal enterprise under the conditions of paragraph 4 (b). The provisions of paragraph 5 shall apply mutatis mutandis.

Oddíl 3.

Establishment of municipal enterprises from nationalised assets.
§ 10.
If the nationalised property has been transferred to the People's Administration (§ 4, paragraph 1 of the Act), it does not transfer ownership to the People's Administration's Association concerned but directly to the Company. It is a special-purpose property which can only be used by the People's Administration to establish a municipal enterprise or to integrate it into such an enterprise. Paragraph 9 (1) shall apply mutatis mutandis.

Oddíl 4.

The establishment of municipal undertakings from the assets of other entities.
§ 11.
If another entity devotes assets to the establishment of a municipal enterprise, it may transfer it to the concerned union of the people's administration; Paragraph 10 shall apply mutatis mutandis if they do not do so.

Díl II.

Species of municipal enterprises.
§ 12.
List of types of municipal enterprises.
(1) According to the municipal owner, the following are recognised:
(a) municipal (urban) undertakings;
(b) municipal municipalities;
(c) regional communal enterprises.
(2) According to the number of municipal owners, the following are recognised:
(a) individual municipal undertakings; and
(b) joint communal undertakings.
(3) According to the scope of the business, the following are recognised:
(a) simple municipal enterprises; and
(b) communal undertakings combined.
§ 13.
Individual and joint enterprises.
(K § 13 of the Act.)
(1) Communal undertakings are normally established as undertakings belonging to a single association of people's administrations (individual communal undertakings).
(2) Two or more volumes of the same level of popular administration may be associated with the joint operation of a municipal undertaking. The City of Statutes, Slovakia, the City (Municipality) established by the Municipality, may be associated with the joint operation of the same municipal undertaking either with another municipality or with the district, but not with both.
(3) A joint communal enterprise may be set up if it is to serve the common needs of all or the population of the people concerned, or if it is to make more effective use of natural resources, products, raw materials, real estate or labour in the territories of the people's unions concerned.
(4) The joint municipal enterprise is in the joint communal ownership (co-ownership) of the respective volumes of the People's Administration (§ 19).
§ 14.
Community enterprises simple and combined.
(1) As a general rule, the association of the People's Administration brings together an economic unit (s) with a related business (joint municipal enterprise) in one municipal undertaking.
(2) A combined municipal enterprise may also be set up from economic units (plants) with different types of business, if it can complement each other with its products or services, or if this organisational link effectively uses resources of raw materials or energy, services, products, semi-finished products, waste or surpluses. Such joint ventures can be described as "kombinate 'with an indication of the predominant type of business (e.g. construction). The management of individual plants of the same company must be recorded in a well-run business. In particular, supplies and services provided to other plants of the same household shall be recorded on an effective basis.
(3) Even if the conditions of paragraph 2 are not met, a combined municipal undertaking may exceptionally be set up from economic units with different types of business, unless their separate operation is economically viable for small scale, capacity, number of employees or for other similar reasons.
(4) Communal enterprises with a single business (simple communal enterprises) can only be set up if they are an economic unit in which operating equipment, raw materials, labour and administrative equipment can be fully used in such a way that separate and separate operations are economically viable. If the association of the People's Administration has more than one economic unit (s) with the same business, it shall be linked to a single municipal undertaking, unless serious reasons for economic effectiveness prevent it.

Díl III.

Management of the creation of municipal enterprises.
§ 15.
Complaint to establish a municipal enterprise.
A communal enterprise may be established
(a) on the initiative of the National Committee of the People's Administration Volume concerned; or
(b) at the invitation of the Supervisory National Committee (Office); or
(c) by decision of the Supervisory National Committee (Office).
§ 16.
Establishment of a municipal undertaking on its own initiative by the National Committee.
(K § 7, paragraph 1 of the Act.)
(1) As a general rule, a communal undertaking is set up by a resolution of the National Committee of the People's Administration concerned on its own initiative.
(2) The resolution of the National Committee on the establishment of a municipal undertaking requires the same formalities as the resolution on budgetary matters. At the same time, the text of the instrument of incorporation shall be laid down by this resolution. This resolution may be challenged by appeal, as well as by the budget resolution of the People's Administration.
(3) The resolution of the national committee referred to in paragraph 2 requires the approval of the monitoring national committee (office) for its validity.
(4) The provisions of paragraphs 1 to 3 also apply mutatis mutandis to the establishment of a community enterprise's split-up (subsidiary) plant, to the integration of other assets into a community enterprise and to the increase or reduction of its common equity.
§ 17.
Establishment of a municipal undertaking at the call of the Supervisory National Committee (Office).
(K § 7, par. 3, sentence of the first law.)
(1) If the legal conditions for the establishment of a municipal undertaking are fulfilled and the national committee does not agree on it, it shall be called upon by the supervising national committee (office) to do so within three months. Paragraph 16 (2) to (4) also applies here. If the decision of the Ministry of the Interior is not taken, the National Committee may appeal from it.
(2) The National Committee shall establish a municipal undertaking within three months of the date on which the decision on the call became final.
§ 18.
Establishment of a municipal undertaking by decision of the Supervisory National Committee (Office).
(K § 7, par. 3, sentence of the Second Act.)
(1) If the national committee does not comply with the call for the establishment of a municipal undertaking within three months of the date on which it has acquired legal authority, the national monitoring committee (office) shall establish the local undertaking by its own decision within a further three months, while also establishing the text of the instrument of incorporation.
(2) The decision of the supervising national committee (Office) is either published in the same way as the budgetary resolutions of the national committee concerned are announced and may be challenged by appeal - not least by decision of the Ministry of the Interior - of persons who would be entitled to appeal against the resolution on the budget of the People's Administration. The right of appeal shall also lie with the national committee concerned.
§ 19.
Specific provisions on the establishment of joint municipal undertakings.
(1) A joint communal enterprise is established by agreement between the national committees of the participating associations of the People's Administration. The agreement of the participating national committees shall take place through their agreed resolutions.
(2) The agreement setting up a joint communal undertaking shall also specify the assets each of the participating volumes of the people's administration brings to the joint communal undertaking, the amounts which the assets are valued at, the co-ownership interests of the joint communal undertaking, the joint management of the joint administration, the rules of procedure governing the management of the joint administration, the participation of the public administration in the profit, the loss of the undertaking, the circumstances in which the participating national committees may request the abolition of the joint communal undertaking and the distribution of any liquidation surplus between them.
(3) The establishment of a joint communal undertaking shall be governed by a common instrument of incorporation (Section 21).
(4) The agreement referred to in paragraph 1 shall be approved and the further tasks of the monitoring national committee shall be carried out by the national committee (office), which shall be the closest joint supervisor to the participating associations of the People's Administration.
(5) The Supervisory National Committee (Office) may invite national committees of two or more volumes of the People's Administration to set up a joint communal enterprise if such a measure is economically effective. Paragraphs 17 and 18 apply mutatis mutandis.
§ 20.
Order on the establishment of a municipal enterprise.
(1) The establishment of a municipal undertaking shall be published in the Official Journal by the National Committee of the People's Administration of which it is owned. This is also the case if the municipal enterprise was set up by a decision of the supervising national committee (office). If it is a joint communal undertaking, the establishment of the joint venture shall be declared by the participating national committees, in whose area the seat of the joint venture is situated.
(2) The Order shall state:
(a) which association of the People's Administration is the municipal owner of the enterprise, after which the associations of the People's Administration are its joint owners;
(b) the company and its registered office;
(c) what his business is;
(d) establishing a date.
(3) The provisions of paragraphs 1 and 2 shall apply mutatis mutandis to the establishment of a fissile (secondary) establishment of a municipal enterprise. Any amendment to one of the points referred to in paragraph 2 shall also be published in the Official Journal.
§ 21.
The charter.
(K § 8 of the Act.)
(1) In particular, the following particulars shall appear in the instrument of incorporation:
(a) The dates of the resolution of the national committee setting up the municipal undertaking and the dates of the decision of the supervising national committee (office) which approved its establishment.
(b) Indication of which of the People's Administration is the municipal owner of the enterprise, after which of the People's Administration's associations are its municipal co-owners.
(c) Company and registered office.
(d) Subject matter of business.
(e) The date on which the municipal undertaking is set up and the municipal undertaking takes over the assets.
(f) The collective designation of the property from which the undertaking was established or which was incorporated into it. This designation may become a reference to an earlier company, after the case of an earlier owner.
(g) Indication of the real estate and property rights from which the municipal undertaking is established or which are incorporated in it by indicating the cadastral number of the property and the cadastral territory of which the land register is concerned; after a similar designation of rights and authorisations which are the subject of registration in other public books, registers or lists (water register, patent register, etc.).
(h) Indication of the categories of staff established by the National Committee (§ 21, paragraph 3, point (b) of the Act).
(ch) Provisions on the representation of a municipal undertaking and the company's marks.
(i) Provisions on the manner in which the company's accounts are published.
(2) The instruments of incorporation of the joint communal enterprise shall also include an indication of the co-ownership interests of the public administrations involved and an indication of the composition of the Board of Directors.
(3) The Ministry of the Interior may issue binding directives and formulas for the uniform drafting of instruments of incorporation.
§ 22.
Company.
(K § 16 of the Act.)
(1) The communal undertaking is obliged to use the term "municipal undertaking" in its company in its unabridged version. In the company it is appropriate to indicate whether it is a municipality, district or region. In the case of a joint municipal enterprise, if there are multiple volumes of the people's administration, this must be clearly stated in the company's wording, but without the need for all relevant volumes of the people's administration to be named. As far as possible, the company will also be indicated by the subject of business.
(2) When a municipal enterprise was established from a nationalised or confiscated enterprise and there were specific reasons for doing so, in particular if the former enterprise's company was well established in domestic or foreign business circles, its wording may be taken in part or in full into the municipal enterprise as part of it.

Část třetí.

Scope of administrative bodies.

Oddíl 1.

The organization of the administration.
§ 23.
(1) The communal undertaking shall manage:
1. the National Committee,
2. the Board of Directors, if established, and
3. Administrator of the municipal enterprise.
(2) The Secretariat is the assistant body of the Board of Directors if it has been set up.
(3) Managers of a municipal enterprise are subordinate to a qualified deputy and senior officials, if any, and other staff.

Oddíl 2.

Scope of the National Committee.
(Paragraph 21 (3) of the Act.)
§ 24.
(1) The National Committee of the People's Administration, which is owned by a municipal undertaking, exercises its competence either directly or through the Board of Directors (Sections 25 to 31).
(2) The following shall be directly exercised by the national committee:
(a) establish a municipal undertaking or its subsidiary plant and procure a charter;
(b) integrate other assets into a municipal undertaking;
(c) increases or decreases the common equity of a municipal undertaking;
(d) abolish a municipal undertaking or its spill-over (secondary) plant;
(e) requests the expropriation of private equity (Section 3 of the Act);
(f) establish and abolish the Board of Directors of a municipal undertaking;
(g) appoint and withdraw part of the board members (Sections 27 (3) and (5)) and provide for remuneration for special work for all board members (Section 27 (12));
(h) establish and conclude a contract of employment on behalf of a municipal undertaking and withdraw it, after having noted that it is giving up its duties;
(ch) appoint and withdraw the liquidator of the repealed municipal enterprise;
(i) lodge appeals against decisions of the Supervisory National Committee (Office) concerning matters relating to its direct competence in the matters of municipal undertakings.
(3) The other members of the national committee shall exercise their responsibilities directly only if no board has been set up. This is the scope reserved by this Regulation or other provisions in the case of communal undertakings to the national committee of the popular administration concerned as owner and operator of a municipal undertaking. In particular, it belongs to the following cases (§ 21 (3) of the Act):
(a) to establish and withdraw a qualified deputy for the management of an undertaking under trade or other rules;
(b) after hearing the administrator, appoint and dismiss senior officials of the undertaking to the extent specified in the instrument of incorporation and decide on their personal matters;
(c) after hearing the administrator grant and withdraw the procure or the commercial authority;
(d) agree on legal acts requiring higher approval (§ 19 (5) of the Act);
(e) approve the principles for the organisation of the undertaking and decide on the business plan;
(f) to keep an eye on the operation of the undertaking;
(g) a resolution on the company's budget and accounts;
(h) approve the annual report on the operation of the undertaking.
(4) The National Committee is entitled to reserve its direct prior approval of the measure of the administrator of a municipal enterprise [§ 21, paragraph 4, point (b) of the Act], even if the Board of Directors has been established.

Oddíl 3.

Board of Directors.

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Regulation Information

CitationGovernment Decree No. 10 / 1949 Coll., implementing the Act on Municipal Enterprises and issuing their Statutes (Statutes of Municipal Enterprises)
Regulation Type-
Author-
CollectionCode of Laws
Date of Promulgation29.01.1949
Effective from29.01.1949
Effective until-
Status Valid
The regulation text is for informational purposes only.
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