What is Act No. 112 / 1990 Coll.?

Act No. 112 / 1990 Coll., amending and supplementing Act No. 173 / 1988 Coll., on an enterprise with foreign participation — Act amending and supplementing Act No. 173 / 1988 Coll., on an enterprise with foreign equity participation.

When it became Act No. 112 / 1990 Coll. effectiveness?

Act No. 112 / 1990 Coll. became effective 01.05.1990.

Is Act No. 112 / 1990 Coll. still valid?

Yes, Act No. 112 / 1990 Coll. is still valid and effective.

Act No. 112 / 1990 Coll.

Act amending and supplementing Act No. 173 / 1988 Coll., on an enterprise with foreign equity participation

Valid Effective from 01.05.1990

Čl. I „§ 2 „§ 3 „§ 5 „§ 6 „§ 12 „§ 13 „§ 15 „§ 16 „§ 18 „§ 28 Čl. II Čl. III Čl. IV

112

THE LAW

of 19 April 1990

amending and supplementing Act No. 173 / 1988 Coll., on an undertaking with foreign shareholding

The Federal Assembly of the Czechoslovak Federal Republic has decided on this law:

Čl. I

Act No. 173 / 1988 Coll., on an enterprise with foreign equity participation, is amended as follows:

1. Paragraph 1 shall be deleted.

„§ 2

(1) An undertaking with a foreign shareholding (hereinafter referred to as "the undertaking ') is a legal entity having an economic activity which has its registered office in the territory of the Czechoslovak Federal Republic, provided that a foreign participant is involved in or after its establishment.

(2) A foreign participant for the purposes of this Act means a legal person with a registered office and a natural person residing outside the territory of the Czechoslovak Federal Republic, who is involved in an equity contribution on the holding.

(3) A Czechoslovak participant for the purposes of this Act means a legal person with a registered office and a natural person residing in the territory of the Czechoslovak Federal Republic, who is involved in an asset deposit alongside a foreign participant in the enterprise.

(4) The provisions of this Act shall also apply to cases where an undertaking is set up or is engaged exclusively in the business of a foreign participant. '

„§ 3

The creation, legal form, legal circumstances and demise of the enterprise is governed by Czechoslovak law.1) '.

4. The heading of Part II reads: "AUTHORISING THE ESTABLISHMENT OF THE UNDERTAKING '.

„§ 5

An undertaking may be established only on the basis and within the limits of the authorisations granted by the Federal Ministry of Finance in an agreement with the Ministry of Finance, Prices and Wages of the Republic in whose territory the undertaking is to have its registered office (hereinafter referred to as the "authorisation '). In the banking sector, the State Bank of Czechoslovakia grants authorisation.'

„§ 6

(1) Any party may submit an application for authorisation. The application shall specify:

(a) the name, registered office, legal form and subject matter of the undertaking's business;

(b) the name, address and, where appropriate, residence and business of the participants;

(c) the amount of the capital, the amount of the shares of each participant, the form and currency of those shares, the amount of the reserve fund, the representation of the participants in the bodies of the undertaking, where its determination is permitted by the legal form of the undertaking, as well as the method of allocating profits and covering losses, in so far as this does not result from the legal form of the undertaking.

(2) Where an undertaking establishes more than one person, the application for authorisation shall be accompanied by a draft contract establishing the undertaking and a draft of its statutes or statutes. ';

Article 7 (1) reads as follows:

"(1) In deciding to grant an authorisation, account shall be taken of whether the activity of the established enterprise is expected to be in line with the interests of the Czechoslovak economy and that, in economic activity, it will generate sufficient financial resources in the Czechoslovak currency and foreign currencies. '

8. Article 7 (3) reads as follows:

"(3) The authorisation decision shall be issued in administrative proceedings (2) no later than 60 days after the application has been submitted."

„§ 12

The undertaking shall, after its establishment, establish a reserve fund in the amount and manner specified in the Statutes or Statutes. The fund shall supplement at least 5% of the profits resulting from the payment of taxes annually up to the amount specified in the Statutes or Statutes. The minimum reserve amount shall be 10% of the capital. The holding shall provide foreign exchange funds for part of the reserve fund. ';

10.

„§ 13

After the fulfilment of the tax obligations and the allocation to the fund (Section 12), the company may use the profit to be distributed between the participants. '

11.

„§ 15

The undertaking shall be subject to the tender obligations laid down in the foreign exchange regulation.3) '.

12.

„§ 16

The company may set up foreign currency accounts with the Czechoslovak Foreign Exchange Money Institute or with the approval of the Czechoslovak State Bank with the foreign bank. '

13.

„§ 18

An undertaking may accept a foreign currency credit from the Czechoslovak Foreign Exchange Money Institute; a foreign bank may accept such a loan on the basis of the assent of the Czechoslovak State Bank. '

14.

„§ 28

The Government of the Czechoslovak Federal Republic may provide for a regulation whereby an undertaking may be set up without authorisation or by way of derogation the conditions for granting such authorisation. '

Čl. II

Authorisations granted prior to the application of this Act under the existing regulations for the conclusion of a contract establishing an undertaking shall be considered as authorisations for the establishment of an undertaking granted under this Act.

Čl. III

The Bureau of the Federal Assembly of the Czechoslovak Federal Republic is hereby authorised to publish in the Collection of Laws the full text of Act No. 173 / 1988 Coll., on an enterprise with foreign shareholding, as is apparent from the amendments and additions made by this Act.

Čl. IV

This Act shall take effect on 1 May 1990.

Havel v. r.

Dubček v. r.

CHF

1) Act No. 104 / 1990 Coll., on Equity Companies. Act No. 101 / 1963 Coll., on Legal Relations in International Trade (International Trade Code). Economic Code, as amended by Act No. 103 / 1990 Coll.

2) Act No. 71 / 1967 Coll., on Administrative Procedure (Administrative Regulations).

3) Paragraph 12 (1) (a) of Foreign Exchange Act No. 162 / 1989 Coll. Decree No. 169 / 1989 Coll., implementing the Foreign Exchange Act.