Act No. 118 / 1948 Coll.

Act on the organisation of wholesale activities and the nationalisation of wholesale enterprises

Valid Effective from 03.06.1948
118.
Law
of 28 April 1948
on the organisation of wholesale activities and the nationalisation of wholesale enterprises.
The Constitutional National Assembly of the Czechoslovak Republic decided on this law:

Oddíl I.

Organisation of wholesale activities.
§ 2.
(1) Wholesale activities under this Act are to be understood as after a business in the Czech Republic to purchase goods in their own or in a foreign account and to dispose of them (in the same substance or following changes which adapt goods within the meaning of Section 38 (a) of the Trade Code or under Section 54 of the Trade Code to the needs of the buyer in order to enable them to be disposed of) to physical or legal persons who sell them, process or consume them in their business, and to consumers in large quantities. The activity of the agent and manager is always a wholesale activity.
(2) The activity referred to in paragraph 1 shall be regarded as a wholesale activity in accordance with this Act in respect of associations of profitable and economic enterprises established under the Law of 9 April 1873, No 70, on profitable and economic communities, in Slovakia for cooperatives established under § § 223 et seq. of Article XXXVII / 1875, on the Commercial Act, even if it is not operated by business.
(3) The Minister for Internal Trade will determine by a decree in the Official Journal who, in the various fields of wholesale activity, is considered to be a large-scale processor, consumer and consumer.
(4) The Minister for Internal Trade may specify in which trade branches or undertakings the wholesale activity is not subject to this law. Measures of a general nature shall be published in the Official Journal.
§ 3.
The Minister for Internal Trade shall establish a decree in the Official Journal in which fields and to what extent producers or importers may directly supply raw materials, semi-finished products, finished products and auxiliary substances of all kinds to manufacturing undertakings.
§ 4.
(1) The Minister for Trade will entrust the wholesale activity to the national undertakings and may exceptionally also entrust other undertakings or authorities, while at the same time determining the scope of the activity.
(2) Undertakings entrusted pursuant to paragraph 1, second sentence, shall be obliged to operate wholesale activities separately from their other activities. The Minister for Internal Trade shall keep an eye on this wholesale activity and may at any time, by his or her authority, review it and give binding guidance to it.

Oddíl II.

The extent of nationalization.
§ 5.
All undertakings engaged in the activity referred to in § 2 (1) and (2), and in particular all undertakings which were members of the wholesale and foreign trade group on 25 February 1948, shall be regarded as wholesale undertakings unless proven otherwise.
§ 6.
(2) For undertakings operating at the same time wholesale activities under this Act and foreign trade pursuant to the Act of 28 April 1948, No 119 Coll., on the state organisation of foreign trade and international shipping, the Ministers of Internal Trade and Foreign Trade shall agree, taking into account whether the importance of the undertaking in internal or foreign trade is prevailing, according to which both laws will be followed.
§ 7.
Wholesale undertakings (§ 5) which will not be nationalised pursuant to § 6, paragraph 1, or entrusted pursuant to § 4 shall cease their activities on a date to be determined by the Minister of Internal Trade by a decree in the Official Journal. This date shall cease to be the date on which they are authorised to conduct their wholesale business.
§ 8.
(1) By nationalisation, the State acquires ownership of the national property.
(2) The nationalisation concerns:
(a) real estate, buildings and equipment;
(b) accessories of the undertaking, including all movable and immovable property and rights (licences, trade licences, stamps, samples, etc.), notes, securities, holding books, cash and receivables,
(c) movable property and rights other than those relating to the undertaking.
(3) The property referred to in paragraph 2 concerns nationalisation, whether it serves or is intended to operate a nationalised enterprise, even if it belongs to someone other than the owner of the enterprise. Patents and stocks only concern nationalisation if they belong to the owner or operator of the nationalised enterprise.
(4) They shall be nationalised together with the undertaking to the extent resulting from the provisions of paragraphs 2 and 3:
(a) all commercial undertakings and establishments belonging to the owner or operator of the nationalised undertaking;
(b) all undertakings and establishments forming a nationalised economic unit with the undertaking, even if they belong to someone other than the owner of the nationalised enterprise.
(5) If the nationalised company of a limited-liability limited company is based on shares, joint-stock companies, limited-liability companies, all their assets shall be nationalised and, to the same extent, group companies with more than half of the capital or with a decisive influence on them.
(6) The Minister for Internal Trade, Slovakia, after hearing the delegate of industry and trade, may also exclude from nationalisation individual items of property, property files or rights, unless they are necessarily necessary for the operation of a national undertaking and leave them to the owner to whom it may at the same time impose conditions, in particular the condition that, within a specified period, it establishes for the benefit of the national undertaking a service or a right of use.
(7) The extent of the nationalisation referred to in paragraphs 2 to 5 shall be decided by the Minister for Internal Trade, Slovakia, after the hearing of the Trade and Industry Officer. The provisions of the Government Decree of 13 January 1928, No 8 Coll., on proceedings in matters falling within the competence of political authorities (administrative proceedings), do not apply to the procedure for determining the extent of nationalisation.
§ 8a.
If, in the field of internal trade, the Minister of Internal Trade does not use the property nationalised under this Act to establish a national enterprise or to integrate it into a national enterprise, or if such property is not entrusted to the administration of the authorities in its field of competence, the Minister of Internal Trade may, in agreement with the Minister of Finance and with another Minister, delegate such property to other legal persons in order to take action on it in its own field of activity, or may entrust it to the administration of municipal undertakings or to replace it as provided for in Section 13.
§ 9.
The Minister for Internal Trade, in Slovakia, after hearing an industrial and commercial agent, may impose on the owner of a wholesale undertaking whose activity has been discontinued pursuant to Article 7 in order to transfer parts of the property, in particular the stock of goods stopped by the wholesale undertaking for compensation under Article 13, to the owner of the national undertaking which it shall also determine.
§ 10.
(1) A national undertaking to which the assets of a nationalised undertaking are incorporated shall enter into its liabilities on the day of taking over. When assets are incorporated into several national enterprises, the Minister for Internal Trade shall designate the undertakings to which each national undertaking enters.
(2) If the Minister of Internal Trade has delegated the nationalised assets to the administration of the authorities in his field of competence, he shall at the same time determine, in agreement with the Minister of Finance, which shall be the date on which the assets are taken over.
(3) A national undertaking to which the assets nationalised pursuant to Article 8 (3) and (4) (b) belonging to a person other than the owner of the undertaking are incorporated shall enter into obligations arising from the rights attaching to that property, to the extent and under the conditions laid down in the regulations implementing the Decree of the President of the Republic No 100 / 1945 Coll., on the nationalisation of mines and certain industrial enterprises, as amended by the Regulations amending it and supplementing it (hereinafter referred to as the "Decree"). The same rules also apply to the transfer of such liabilities if the property is entrusted to the authorities in the field of internal trade or transferred to another minister or entrusted to the administration of a municipal undertaking or transferred to another legal person under Section 8a.
(4) The Minister of Internal Trade may, in agreement with the Minister of Finance and the Minister of Finance, take measures to transfer liabilities belonging to the national assets transferred under Paragraph 8a to another Minister or entrusted to the administration of a municipal undertaking or transferred to another legal person.
(5) The obligations of a nationalised undertaking do not include the obligations under which the assets of that undertaking or part thereof are to be taken over by a third party after the date of application of this law. The obligations of a nationalised undertaking shall also not include personal taxes, levies and charges on the former owner; such commitments shall not be transferred with or be satisfied by an asset incorporated into a national undertaking or entrusted to the administration of the authorities referred to in paragraph 2 or with which a measure has been taken or which has been transferred under Paragraph 8a. Personal taxes and benefits are the tax on pensions, war allowance, rent tax directly levied, property tax pursuant to Government Decree No. 410 / 1942 Coll., property levy pursuant to Act No. 134 / 1946 Coll., on property increase levy and asset benefit, as amended by Act No. 180 / 1948 Coll. The methods of payment of such personal taxes and benefits shall be laid down by the Ministry of Finance by a decree in the relevant official document.
(6) In the case of commitments which are economically unjustifiable, including obligations under service contracts, guaranteeing employees unduly high salaries, benefits, benefits for disposal, etc., the national undertaking may request cancellation or other appropriate adjustments. If this does not come to an agreement, the arbitration panel established pursuant to Act No. 228 / 1946 Coll., shall decide on arbitration courts for adjusting certain obligations of national undertakings, as amended by Act No. 272 / 1948 Coll. The provisions of the first and second sentences shall also apply mutatis mutandis if they relate to commitments which are transferred to the administration of the assets referred to in paragraph 2 or which are transferred pursuant to paragraph 4.
(7) If the measure entrusting the nationalised property to the administration of the authorities in the field of internal trade or of another minister does not imply anything else, the State does not guarantee the obligations of the nationalised undertaking, even if the obligations under Paragraph 11 are adjusted.
§ 11.
Where the assets of a nationalised undertaking are overpaid on the date on which they are taken over, the national undertaking may ask the court to adjust, at the level of the general price of the assets of the asset over-indebted to the undertaking on the date on which they are satisfied and to determine their maturity, account being taken of the economic possibilities of the national undertaking. This applies mutatis mutandis to a municipal enterprise or other legal person to whom the assets of a nationalised enterprise have been entrusted to administration or transferred under Paragraph 8a.
§ 12.
(1) A national undertaking may object to a legal act carried out by the owner of assets nationalised in accordance with Section II after 27 October 1945 with a view to damaging or making it more difficult to nationalise or introduce assets in his or her foreign interest.
(2) Retirement may take place within 3 years of the takeover. Otherwise, the provisions of § § 46 to 52 of Civil Code No. 141 / 1950 Coll.
(3) Legal negotiations on the transfer of wholesale undertakings (Section 5) or on the transfer of capital holdings in companies whose undertakings are nationalised pursuant to Section II, if concluded two months before the date of nationalisation, are valid only if approved by the Ministry of Internal Trade.

Oddíl III.

Replacement.
§ 13.
(1) Save as otherwise provided, the property nationalised under this Act and the property assets (parts thereof) transferred to the ownership of the national undertaking pursuant to Paragraph 9 shall be reimbursed. Article 7 to 11 of the Decree applies accordingly.
(2) Reimbursement shall not be granted to persons who have been or will be convicted of such an offence or are punished for such an offence as to show an hostile attitude towards the People's Democratic Order of the Republic or its Socialist Construction.

Oddíl V.

Transitional provisions.
§ 17.
From the date of the publication of this Act, the owner of the wholesale trade or of another operator, for persons legal to the authority called for to represent them externally, after the case for the national administrator, the provisions of § 37 and 38 of the Decree, in which legal acts exceeding the ordinary administration are required for the prior consent of the Ministry of Internal Trade, which will be granted in Slovakia after the hearing of the board of industry and trade.
§ 18.
(1) Pending the completion of the organisation of the wholesale activity under this Act, the Minister for Internal Trade in Slovakia may, after hearing an industrial and commercial delegate, appoint an agent to each wholesale undertaking.
(2) The agent shall manage the undertaking by analogy in accordance with the provisions of Section 37 of the Decree. The appointment of an agent shall abolish the national administration established pursuant to the Decree of the President of the Republic of 19 May 1945, No 5 Coll., on the nullity of certain acts of property law from the period of insecurity and on the national administration of the assets of Germans, Hungarians, traitors and collaborators, and of certain organisations and institutes, after a case under the Slovak National Council Regulation of 5 June 1945, No 50 Coll. SNR, on national administration.
(3) Paragraph 14 to 16, 18 and 19 of Decree No. 5 / 1945 Coll., after paragraphs 13 to 15, 17 and 18 of Decree No. 50 / 1945 Coll. apply mutatis mutandis to the provision of the agent and his appeal.
(4) The legal proceedings of owners, holders and trustees relating to the property of the undertaking for which an agent has been appointed shall, where they have taken place after its provision, be void.
(5) In the performance of his duties, the agent shall be subject to the supervision of the Minister for Internal Trade; the provisions of § § 22 and 23 of Decree No. 5 / 1945 Coll., after the provision of § 20, § 1, sentences of the second and § § 21 and 22 of Decree No. 50 / 1945 Coll. SNR apply mutatis mutandis.
§ 19.
(1) The existing owners, holders or national managers of wholesale undertakings shall report to the Ministry of Internal Trade, the specimen of which shall be published by the Minister for Internal Trade in the Official Journal. This report shall be submitted within 15 days of the date of publication of the model. The persons invited to do so by the Ministry of Internal Trade must also be jointly involved in the proceedings. The report shall also be signed by the race board or by a race confidant; if the previous owner or holder of the nationalised property is not reporting, he shall be obliged to add his observations to it.
(2) The persons referred to in paragraph 1 shall be required to cooperate in drawing up the accounts for the period until nationalisation, provided that they are invited by the competent central authority.
§ 20.
The undertakings entrusted with the wholesale activity referred to in Article 4 shall, as far as possible, place in their services the employees of the undertakings concerned by this Law in particular.
§ 21.
The legal acts and official acts necessary for the implementation of this Act shall be exempt from fees and charges. However, this exemption does not apply to the business of a nationalised enterprise and to the measures taken by the liquidator in the liquidation of a legal entity or company.
§ 22.
The proceeds (pensions) obtained from a nationalised enterprise up to the date of takeover form part of the basis for the assessment of the tax on pension, general and special taxes on earnings and on the income of the last owner of the nationalised enterprise before its nationalisation.
§ 23.
(1) Where a court or district national committee imposes a penalty on money by a staff member, agent, agent or other body of a physical or legal person in whose representation an offence has been committed pursuant to Paragraph 22, it may say that that person is liable for the sentence imposed on money by common and non-discriminatory means.
(2) This person must, if known to the court (district national committee), be brought to the hearing in the first chair and be entitled to present facts which may be relevant for the assessment of the case and to make proposals.
(3) The statement of liability should be incorporated into the judgment (criminal finding) and the person affected by that statement has the right to refuse it by appeal. In court proceedings, a public prosecutor may also appeal when such a statement has not been made. The same applies to appeals against such a statement as to appeals against a sentence.
(4) Money punishments shall be imposed on the person to whom the guarantee has been imposed in accordance with the general provisions applicable to money punishments.
§ 24.
(1) In the case of a conviction for a crime pursuant to § 22, paragraph 1, or in the case of an administrative offence pursuant to § 22, paragraph 2, for a sentence of freedom or for money exceeding one million CZK, a judgment (criminal finding) shall be published in one or more daily sheets designated by the judgment (criminal finding) for the expense of the sentenced.
(2) The Court of First Instance (Regional National Committee) shall determine whether the grounds for the judgment (finding), or their substance, shall be published in a version which it shall determine.
§ 25.
Within 15 days of its receipt, a criminal conviction may be appealed to the Regional National Committee, which shall decide definitively. The appeal is filed with the district national committee that issued the finding. The appeal has suspensory effect.
§ 26.
The transgressions of this law are limited at the age of 3.

Oddíl VII.

Efficiency and execution.
§ 27.
(1) Paragraph 5, 6, 8, 10, 11, 14 and 16 shall become effective on 1 January 1948; other provisions on the day of their publication.
(2) This Act shall be implemented by the Minister for Internal Trade in agreement with participating members of the Government.
Dr Beneš v. r.
Gottwald v. r.
Krajčir v. r.

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Regulation Information

CitationAct No. 118 / 1948 Coll., on the organisation of wholesale activities and the nationalisation of wholesale enterprises
Regulation Type-
Author-
CollectionCode of Laws
Date of Promulgation03.06.1948
Effective from03.06.1948
Effective until-
Status Valid
The regulation text is for informational purposes only.
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