Act No. 105 / 1953 Coll.
Law on local industry and municipal economy
Valid
Effective from 01.01.1954
105.
Law
of 22 December 1953
on local industry and municipal economy.
The National Assembly of the Czechoslovak Republic decided on the following Act:
Initial provision.
In companies and organisations of local industry and municipal economy, the State organises production and services of local importance. In order to guarantee the broad participation of workers in the use and development of local material and labour resources and to develop the creative work of all workers, the building and management of these enterprises and the organisation of the national committees in particular are entrusted. The National Committees ensure that these businesses and organisations properly meet the needs of workers and that they continue to deepen and improve their activities.
Local industry.
Tasks and organisational form.
(1) The local industry has in particular the following tasks:
the production and development of articles and products of daily and household supplies for the local market;
provide craft production for industry, transport and agriculture;
carry out repair and maintenance of household equipment and repair of consumer goods and others;
produce custom-made consumer goods.
The local industry carries out this activity mainly from local raw materials sources and waste material of national enterprises, as well as from secondary materials and new materials, and searches for new raw materials.
(2) Production in this sector is organised in the form of local industry enterprises.
Business creation.
(1) The local industry company is set up by a district (district) national committee, following the case of a local national committee of a city or municipality of a urban type. The establishment of an undertaking shall require the approval of the Regional National Committee, which, in the case of a local national committee (urban undertaking), shall also obtain the opinion of the District National Committee. With the agreement of the Ministry of the Local Economy, the Regional National Committee may also set up a local industry enterprise.
(2) The National Committee set up by the local industry is directly superior to it as its head of the National Committee and is responsible for it.
(3) For important economic reasons, the Ministry of the Local Economy may also set up a local industry business in agreement with the Ministry of Finance; the undertaking is subject to it immediately.
(4) Local industry companies are registered in the company register.
Legal status and property.
(1) The company of the local industry is a legal entity. The owner of his property is the State and the company is entrusted with the property in administration. In matters relating to this property, the undertaking acts in its own name.
(2) The undertaking must not dispose of its essential resources. Third parties may not acquire lien or other rights in kind in respect of the basic assets of the undertaking. Exemptions from the prohibition on disposal or loading may be authorised by the Ministry of the Local Economy or by the National Committee under its authority. Negotiations contrary to this prohibition shall not have legal effects.
(3) The assets held by the local industry cannot be claimed to satisfy the State's claims. The State does not guarantee the liabilities of the local industry.
(4) Only the assets entrusted to it in the management, with the exception of its basic resources, may be met for the liabilities of the local industry.
National assets shall be integrated into the local industry by measures of the Head of the National Committee or the National Committee of the Higher Level or the Ministry of the Local Economy. When the assets are incorporated, the liabilities of the assets belonging to the undertaking shall also be transferred to the undertaking unless other measures have been taken; they shall pass on to him on the day on which the property is taken over. The transfer of liabilities shall exempt the existing debtor; the creditor is not required to be granted.
(1) The lien rights attaching to parts of property which are the basic resources of the local industry business shall cease to exist without compensation on the date on which such property is incorporated into the undertaking or acquired otherwise. The Library Court shall delete them at the request of the undertaking, referring to this provision. The liabilities for which the lien was established remain unaffected.
(2) The termination of the lien referred to in paragraph 1 shall not take place in cases where the Government authorises an exemption on a proposal from the Minister for the Local Economy, as agreed with the Minister for Finance.
(3) The provisions of Decree-Law No 97 / 1952 Coll., on the termination of rights in rem on certain parts of the national property, which are the basic resources of the company, apply to the conditions under which the other rights in rem in rem in respect of the assets of the company cease to exist.
(1) The Head of the National Committee may, with the agreement of the Regional National Committee, remove and take measures in its own field of competence, in particular including such assets in another undertaking. In the same way, it may exempt the undertaking from the local industry and transfer it to another undertaking.
(2) The Minister for the Local Economy or, under his authority, the Regional National Committee may, as provided for in paragraph 1, carry out transfers of assets or liabilities between undertakings belonging to different leading national committees.
(3) Specific provisions shall specify when the measure referred to in paragraphs 1 and 2 may be replaced by an agreement between the local industry and another entity of the State Socialist sector on the transfer of assets.
(4) The Minister for the Local Economy may exclude and make arrangements for the local industry in its own field of activity or transfer it into his or her jurisdiction in agreement with the Minister in order to make arrangements for it in its own field of activity.
(5) In agreement with the Minister for Finance, the Minister for the Local Economy may transfer to the local industry an undertaking belonging to national assets.
(6) They shall be exempt from the transfer of liabilities under the previous provisions. Such a transition does not require the authorisation of a creditor. The transfer of the undertaking to a local industry undertaking shall be certified by the leading national committee.
Technical industrial and financial plan.
(1) The local industry company draws up its technical industrial and financial plan, which is part of the national development plan for the national economy and follows up on the state budget. This plan determines and directs the company's production and economic activity.
(2) All workers in the local industry business are obliged to perform the tasks imposed by the plan, as economically as possible.
(3) The management of the enterprise is obliged to establish socialist forms of work and to strengthen the material interest of employees in achieving favourable results in the performance of the planned tasks.
Business management.
(1) The head of the local industry undertaking shall be the director, representing and acting on his behalf. He shall be subordinate to the Head of the National Committee and shall be responsible for carrying out his duties. It shall be appointed and withdrawn by the Board of Directors of the National Committee.
(2) Each organisational unit of an undertaking shall be headed by a manager who shall, under his authority, decide separately.
(3) In a local industry, each person is responsible for the performance of his or her tasks.
Management and financing.
(1) Local industry companies operate according to the principles of chozrasčota. They are obliged to continuously reduce their own costs, uncover internal reserves and increase labour productivity.
(2) Specific rules apply to the financing of local industry enterprises and the relations of their financial plans to the budgets of the national committees, following the budget of the Ministry of the Local Economy. Specific regulations also provide for the lending of local industry enterprises.
Changes in the breakdown.
(1) The Minister for the Local Economy or, under his authority, the Regional National Committee may transfer the local industry from one head of the National Committee to another.
(2) The Minister of the Local Economy may exclude the local industry from the organisation provided for in this Act and make provision for it in his own field of competence or submit it to another Minister in agreement with him.
Cancellations.
(1) The Head of the National Committee may abolish the local industry undertaking. In doing so, it shall also determine how it is to be dealt with in respect of the assets of the undertaking cancelled. These measures require the approval of the Regional National Committee.
(2) The head of the national committee shall appoint a liquidator after the dissolution of the local industry. The designated liquidator may also be withdrawn. The winding-up of the firm and the appointment and removal of the liquidator shall be declared for registration in the company register. The liquidator shall not be appointed if, at the time of the cancellation of the undertaking, all its liabilities are transferred to another entity.
(3) The liquidator may only monetize the assets of the cancelled undertaking unless otherwise provided for in paragraph 1. The surplus shall be carried out by the Head of the National Committee.
(4) On completion of the liquidation, the liquidator shall propose the removal of the firm from the company register. It shall forward the books and files of the cancelled undertaking to the head of the national committee, unless otherwise specified in the specific provisions.
(5) The provisions on the Director apply mutatis mutandis to the appointment and removal of the liquidator and to its liability.
Management of local industry by national higher-level committees and the Ministry of the Local Economy.
(1) National higher-level committees and the Ministry of the Local Economy shall also participate in the management of local industry, alongside the head of the national committee.
(2) If the competent national committee fails to fulfil one of the tasks of managing local industry and if such a measure requires the interests of implementing the national development plan or other important general interest, the national higher-level committee or the Ministry of the local economy shall do so. The same can be done if the reasons for the economy or interest in the smooth operation of the enterprise so require.
Status.
The Ministry of the Local Economy shall issue, with the approval of the Government, the status of local industry undertakings, in which it shall lay down more detailed rules on the organisation of such enterprises, their legal circumstances and activities and their employees. The Statute also provides for corporate governance by national committees (their bodies) and the Ministry of the Local Economy.
The communal economy.
Tasks and organisational form.
(1) The task of the municipal economy is, in particular, to provide services and performances to meet the living and cultural needs of the population ("municipal services") and to contribute to the improvement of the standard of living of workers by continuously expanding and improving them.
(2) The communal economy provides services and performance in the following groups of fields: housing, construction, urban transport, technical and other services, energy and the external treatment of municipalities.
(3) The provision of services and performance in the municipal economy sector is organised in the form of:
(a) undertakings in the communal economy;
(b) budgetary organisations for municipal services;
(c) home administrations.
Companies of the municipal economy.
Business creation.
(1) A local national committee in a city or a municipality of urban type, after the case of a district national committee, will be set up by the municipal economy. The establishment of an undertaking shall require the approval of the Regional National Committee, which, in the case of a local national committee (urban undertaking), shall also obtain the opinion of the District National Committee.
(2) The National Committee which has set up a community economy undertaking is directly superior to it as its head of the National Committee and is responsible for it.
(3) The undertakings of the municipal economy shall be registered in the company register.
Other provisions.
(1) The municipal economy company is drawing up its technical economic and financial plan.
(2) As regards the legal status and assets of undertakings of the municipal economy, their technical economic and financial plans, management, management and financing, changes in the breakdown of enterprises and their abolition and corporate governance by national higher-level committees and by the Ministry of the Local Economy, the provisions for local industry apply mutatis mutandis (§ § 4 to 13).
(3) The Ministry of the Local Economy shall issue, with the approval of the Government, the status of the undertakings of the municipal economy, in which it shall lay down more detailed rules on the organisation of such undertakings, their legal situation and their activities and their employees. The Statute also provides for corporate governance by national committees (their bodies) and the Ministry of the Local Economy.
Budget organisation for municipal services.
(1) In municipalities in which the conditions for the establishment of a local economy undertaking are not met, in particular where the establishment of a separate undertaking would be uneconomical or inappropriate for certain services, the local national committee shall, as appropriate, provide the municipal services with specific budgetary arrangements.
(2) The Ministry of the Local Economy shall, in agreement with the Ministry of Finance, adapt the guidelines to the details of the budgetary organisation of the national municipal services committees.
Housing.
It lays down specific rules for the organisation of housing, including home administration.
Common and final provisions.
Organisation of supply and sales.
The Minister for the Local Economy shall adjust the supply and sales of the local industry and the municipal economy in agreement with the participating members of the Government.
Transitional provisions.
Where communal undertakings are referred to in the current rules, they shall be understood to mean local industry and local economy undertakings, unless there is something else coming from an explicit provision or the nature of the case.
(1) The National Committees shall, within the framework of this Act and according to closer guidance from the Ministry of the Local Economy, reorganise existing municipal enterprises, on the one hand, on the other hand, on local enterprises, on the other hand on the local economy, after budgetary organisation, or integrate them into newly established such enterprises (organisations). The restructuring of municipal housing companies will be carried out in accordance with specific regulations.
(2) The Ministry of the Local Economy shall, in accordance with the provisions of this Act, reorganise the national undertakings directly subordinate to it.
The authority to determine the extent of nationalisation for the nationalised assets left to be incorporated in the local industry or in the municipal economy may be delegated by the Minister for the Local Economy to the Regional National Committees.
Measures taken in accordance with this Act before its effect shall be deemed to have been taken under it.
Repeal clause.
(1) All provisions contrary to this law shall be repealed; in particular:
(a) Act No. 167 / 1950 Coll., on Municipal Enterprises,
(b) Government Decree No. 35 / 1951 Coll., declaring the status of municipal enterprises.
(2) Until reorganisation is carried out in accordance with § 22, the existing rules may be applied mutatis mutandis.
Efficiency.
This Law shall take effect on 1 January 1954; It shall be implemented by the Minister for the Local Economy in agreement with the participating members of the Government.
Zaporocký v. r.
Fierlinger v. r.
Dr Dolansky v. r.
Dr Kylý v. r.
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Regulation Information
| Citation | Act No. 105 / 1953 Coll., on Local Industry and Municipal Economy |
|---|---|
| Regulation Type | - |
| Author | - |
| Collection | Code of Laws |
| Date of Promulgation | 31.12.1953 |
|---|---|
| Effective from | 01.01.1954 |
| Effective until | - |
| Status | Valid |
The regulation text is for informational purposes only.
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