What is Act No. 176 / 1990 Coll.?

Act No. 176 / 1990 Coll., on Housing, Consumption, Production and Other Cooperatives — Law on housing, consumption, production and other cooperative activities.

When it became Act No. 176 / 1990 Coll. effectiveness?

Act No. 176 / 1990 Coll. became effective 01.06.1990.

Is Act No. 176 / 1990 Coll. still valid?

Yes, Act No. 176 / 1990 Coll. is still valid and effective.

Act No. 176 / 1990 Coll. - Law on housing, consumption, production...

176

THE LAW

of 7 May 1990

on housing, consumption, production and other cooperative activities

The Federal Assembly of the Czech and Slovak Federal Republic decided on this law:

ČÁST PRVNÍ

GENERAL PROVISIONS

§ 1

Purpose of the law

(1) The purpose of the Act is to adjust the status, legal circumstances and principles of the operation of housing, consumer, production and other cooperatives ("cooperative") and other cooperative organisations.

(2) The Act does not apply to agricultural cooperative organisations.

§ 2

Cooperative

(1) The cooperative is a voluntary community of citizens (members) who have been associated with a common economic and other activity and to satisfy and promote their interests.

(2) The cooperative is a legal person; act in legal relations on its behalf and be responsible for those relationships. The cooperative is not responsible for the obligations of other legal entities.

(3) Cooperative matters are managed by members through members' meetings and elected bodies of the Cooperative in accordance with the generally binding legislation and statutes of the Cooperative.

(4) The cooperative shall operate independently and on its own account; taking on an appropriate economic risk.

§ 3

The formation of the cooperative

(1) A cooperative should be established

(a) a resolution setting up meetings on its establishment, the cooperative may create at least five citizens;

(b) the adoption of the statutes of the cooperative,

(c) the election of the cooperative authorities.

(2) The cooperative may acquire rights and undertake obligations from the date of registration in the company register.

(3) The application for registration of the cooperative in the company register is submitted by the cooperative; the proposal must be accompanied by the statutes of the cooperative and the resolution establishing meetings on its establishment.

(4) An activity for which consent is required under specific rules may be carried out by the cooperative only with that consent.

§ 4

Statutes of cooperatives

(1) The Articles of Association (hereinafter referred to as "the Statutes') are the basic internal rules. The statutes shall contain:

(a) the name of the cooperative which must explicitly state that it is a cooperative;

(b) the seat of the cooperative;

(c) the object of the cooperative's activities;

(d) provisions on the establishment and termination of membership, on the rights and obligations of members, as well as on the procedure against members who fail to fulfil their duties;

(e) provisions on the amount or method of determining the amount of a member's share or, where applicable, the basic member contribution or other participating interests, the types and methods of making and using them, the evaluation or amortisation, the way in which they are subscribed (transfer) and their settlement at the end of membership, or, where appropriate, other facts giving rise to a right to settlement (e.g. transfer of membership rights);

(f) the manner and extent of liability of the member for any loss of the cooperative;

(g) more detailed provisions on the bodies of the cooperative, their composition, their duration, their choice and decision-making, and provisions on who organises and manages the normal activities of the cooperative (§ 16 (5), § 21) and who performs the tasks of the head of organisation under labour law.

(2) Statutes must not be contrary to this law and other generally binding legislation.

(3) The statutes and their amendments are registered in the company register.

§ 5

Property of the cooperative

(1) The property of the cooperative is the property of the property of the cooperative and the property rights acquired by the cooperative. Property may be withdrawn from the cooperative only in the cases and under the conditions laid down by law.

(2) The assets of the cooperative are created by the association of members' funds (subscriptions, membership shares, deposits, material benefits and other valuable intangible, tangible and financial deposits) and from the results of the cooperative's activities and, where appropriate, from other sources.

§ 6

Management of the cooperative

(1) The cooperative shall meet its needs and the costs of revenue derived mainly from its economic activity and from other sources.

(2) The cooperative pays taxes and levies on its profits. The remaining profit is used separately by the cooperative and cannot be withdrawn.

(3) Departures from basic resources remain in full to the cooperative and are used separately by the cooperative.

(4) In order to extend the participation of members in the activity and economic results, the cooperative may benefit from its additional equity (other financial or other equity deposits) valued by the profit participation under the Statutes [(§ 4 (1) (e)].

(5) The cooperative may issue bonds to finance its development; the manner in which they are issued, handled and evaluated shall be determined and announced by the Member States in accordance with generally binding legislation.

(6) The cooperative may also manage the property of other legal persons or citizens under a contract concluded in accordance with generally binding legislation.

§ 7

Protection of the environment and natural environment and the health of citizens

(1) In its economic and social activities, the cooperative shall be obliged to protect the environment and the natural environment as effectively as possible from the harmful effects that its activities give rise to, and in particular to ensure that it does not endanger the health of citizens. It shall finance and implement, from its own resources, measures to eliminate the damage caused by its activities and measures to create and protect all environmental and environmental aspects threatened by its activities.

(2) The cooperative shall be obliged to build environmental and environmental facilities, put those facilities into operation together with the relevant production or non-production facilities and ensure that they continue to operate smoothly and efficiently.

§ 8

Termination of the cooperative

(1) The members' meeting may be decided to cancel the cooperative with or without liquidation. The cooperative shall cease to exist on the date of its removal from the company register.

(2) The cooperative shall cease to exist without liquidation by merging, merging or splitting.

(3) The cooperative to which the assets and liabilities of the deceased cooperative have been transferred must immediately notify other legal entities affected by the loss of the cooperative, the disappearance of the cooperative and the transfer of its assets and liabilities; the liquidator has this obligation on liquidation.

(4) The cooperative may also be annulled by decision of the court if, by its activities or actions, it seriously infringes the obligations or conditions laid down in Sections 3 and 4 of this Act.

(5) The cooperative shall cease to exist if the number of its members falls below 5 citizens.

§ 9

Merge and Merge

(1) The assets, liabilities and members of the merged cooperative are transferred to the acquiring cooperative.

(2) When cooperatives are merged, the assets, liabilities and members shall be transferred to the newly created cooperative on the date on which the newly created cooperative was registered in the company register.

§ 10

Breakdown

(1) The members of the divided cooperative shall determine how the cooperative is to be distributed, how its assets and liabilities are to be distributed and, taking into account the legitimate interests of the individual members, shall also determine to which cooperative members shall be transferred.

(2) The split cooperative shall cease to exist and its assets and liabilities shall be transferred to the new cooperative on the date on which it was entered in the company register to the extent specified by the membership meeting of the split cooperative. On that date, members of the divided cooperative shall become members of the new cooperative.

Elimination of the cooperative

§ 11

(1) Where a member's meeting decides to abolish a cooperative with liquidation, it shall establish a liquidator. If the cooperative has been abolished (§ 8 (4)) or has died (§ 8 (5)), the liquidator shall be determined by the court.

(2) The draft registration of the cooperative entering the liquidation and the liquidator of the cooperative shall be submitted by the cooperative.

(3) The date on which registration in the company register referred to in paragraph 2 was carried out shall be the date on which the functions of all the cooperative bodies shall cease, except for a member meeting. In the event of liquidation of the cooperative repealed by a decision pursuant to Paragraph 8 (4), the function of the member meeting shall also cease.

§ 12

(1) The liquidator is entitled to act on behalf of the cooperative in matters relating to liquidation.

(2) The liquidator shall immediately inform the cooperative of the entry into liquidation of all organisations, bodies and other persons affected by this.

(3) At the date of the start of the liquidation, the cooperative shall draw up the financial statements and financial statements and transmit them to the liquidator.

§ 13

(1) Within one month of its establishment, the liquidator shall draw up an opening balance sheet and submit it to the member meeting together with the liquidation plan, the winding-up budget and the inventory of the extraordinary inventory of economic resources carried out at the time of the start of the liquidation.

(2) In particular, the liquidator in the course of liquidation

(a) concentrate money on one account with one money institution;

(b) complete normal matters relating to the cooperative's activities;

(c) make the best possible use of the assets of the cooperative or otherwise in accordance with generally binding legislation;

(d) satisfy, in turn, the proceeds of the liquidation of the State's claims on contributions, taxes and charges, the claims of the members and members of the cooperative, including the settlement of members' shares and other property deposits (participation of members), and return the funds provided to the cooperative from state resources for investments in the five years preceding the liquidation, return the funds entered into the cooperative's assets from the joint cooperative funds and satisfy other claims.

§ 14

(1) The liquidator shall draw up the accounts at the end of the liquidation and submit it to the Member State for approval, together with a final report on the progress of the liquidation, with a proposal for the distribution of any liquidation surplus.

(2) The surplus shall be distributed gradually by paying each member an amount up to the amount of his or her member's share and any additional amount by which the member's liability exceeds that of the member.

(3) The funds remaining after settlement referred to in paragraph 2 shall be transferred by the liquidator:

(a) for cooperatives newly established after 1 July 1988 between members of the cooperative, according to the statutes;

(b) other cooperatives for the development of the municipalities in which the cooperative operates.

(4) The liquidator will make a proposal to delete the cooperative from the company register and ensure the safe deposit of the file material and accounting documents.

ČÁST DRUHÁ

THE COMPETITION AUTHORITIES

§ 15

The authorities of the cooperative are

(a) a membership meeting or general meeting (hereinafter referred to as "membership meeting"),

(b) the Board of Directors,

(c) the Audit Committee;

(d) other cooperative bodies under this Act and the Statutes.

§ 16

Members' meeting

(1) The highest body of the cooperative shall be the membership meeting at which members exercise their right to decide on the matters of the cooperative.

(2) The members shall meet within the time limits laid down by the Statutes, at least once a year.

(3) A meeting of the members must be convened if at least one third of all members of the cooperative so request in writing, by the Supervisory Committee as well as in the other cases mentioned in the Statutes.

(4) The responsibilities of the member meetings include:

(a) adopt and amend the Statutes;

(b) elect and dismiss members of the Board of Directors and the Audit Committee;

(c) approve the annual accounts, the distribution and use of profits and, where appropriate, the method of payment of losses;

(d) decide on the division, merger, merger and cancellation of the cooperative;

(e) decide on the fundamental issues of the concept of cooperative development.

(5) The members' meeting shall decide on other matters relating to the cooperative and its activities, where provided for by this law, the statutes and, where appropriate, the decisions which it has reserved.

(6) The statutes of cooperatives may stipulate that member meetings shall be held in the form of partial member meetings. The sub-member meetings may not decide on the demise of the cooperative and in other cases listed in the Statutes.

(7) If it is not possible to call a membership meeting in view of the scale of the cooperative, the statutes may stipulate that meetings (conferences) of delegates elected by the members of the cooperative shall be convened instead. At the same time, the Statutes will determine the detailed terms and conditions for the selection of delegates.

§ 17

Board of Directors

(1) The Board of Directors is an executive and statutory body (1) of the cooperative; manage the activities of the cooperative and decide on all matters, unless otherwise reserved by this law, statutes or decisions of the member meeting by another institution. The member meeting shall be responsible for its activities.

(2) The Board shall ensure and monitor the implementation of the resolutions of the members of the meeting, regularly report to it on its activities and on the activities of the cooperative; convene a membership meeting and prepare its meetings.

(3) The board meets as needed, usually once a month. It shall meet within 10 days of the receipt of the initiative of the Audit Board if the deficiencies have not been rectified at its request.

(4) The Board of Directors shall elect from among its members the Chairman of the Cooperative (Board) or, as the case may be, the Vice-Chair (Vice-Chairs), unless the Statutes determine that they are elected by membership.

(5) The chairman of the cooperative shall organise and manage the meetings of the Board of Directors. If the statutes so determine, they also organise and manage the normal activities of the cooperative [§ 4 (1) (g)].

(6) The Statutes shall determine how the Board of Directors acts externally.

§ 18

Audit Commission

(1) The Audit Board is entitled to control all activities of the cooperative; discuss the complaints of its members and, where the statutes so determine, the staff. It shall correspond only to the members' meeting and shall be independent of the other bodies of the cooperative.

(2) The Audit Board shall comment on the annual accounts and on the proposal for the distribution of profits or the reimbursement of losses of the cooperative.

(3) The audit board draws the attention of the Board of Directors to the deficiencies identified and requires correction.

(4) The Audit Committee shall meet as necessary, at least once every three months.

(5) The Supervisory Committee shall elect a chairman or vice-chairman from among its members, as appropriate, unless the Statutes determine that they are elected by a member meeting.

Common provisions on cooperative bodies

§ 19

(1) Only members of a cooperative older than 18 years of age may be elected to the cooperative's bodies.

(2) The functions of the Board of Directors and the Board of Auditors are mutually incompatible. Other cases of incompatibility of functions are determined by this law or by the statutes.

(3) The term of office of the elected co-operative authorities is 5 years, unless the statutes determine a shorter term of office. However, the elected authorities shall remain in office until the new authorities are elected.

§ 20

(1) The members' meetings, the Board of Directors and the Audit Committee are eligible for a quorum if an absolute majority of all their members (delegates) are present.

(2) The resolution, including the elections of the co-operative authorities, is adopted if the majority of the members present voted for them, unless otherwise provided for by this law.

(3) The resolution on the adoption of the statutes and their amendments and the demise of the cooperative (§ 8) requires the consent of an absolute majority of all members (delegates).

(4) The details of the elections and appeals of the cooperative bodies and their conduct and verification of the minutes shall be laid down in the Rules of Procedure; the arrangements for its approval are laid down in the Statutes.

§ 21

In a cooperative with a small number of members (up to a maximum of 30 members), the statutes may stipulate that the responsibilities of the Board of Directors and the Audit Board shall be performed by a member meeting which shall elect a chairman from among the members of the cooperative, who shall be the statutory body of the cooperative, (1) or a deputy chairman.

§ 22

Director

(1) The Statutes may determine that the ordinary activities of the cooperative (Paragraph 17 (5)) are organised and managed by the Director appointed and dismissed by the Board of Directors. This is without prejudice to the scope of the Cooperative Board.

(2) The status, activity and tasks of the Director shall be determined by the Statutes.

§ 23

Internal organisation of the cooperative

(1) The internal organisation of the cooperative shall be governed by the rules of organisation and, where appropriate, by other internal organisation rules. The internal organisational unit shall not be named "cooperative '.

(2) The statutory body of the cooperative shall decide on the possible granting of procures2).

ČÁST TŘETÍ

ARTICLE

§ 24

Establishment of membership

(1) The terms of membership are laid down in the law and statutes.

(2) A member of a cooperative where a working relationship is part of a membership may become a citizen after the completion of compulsory education, but first on the date on which he reached 15 years of age.

(3) Unless otherwise specified in the Statutes and the cooperative does not agree with the member on the date on which membership arises, the membership shall take place on the basis of the application submitted on the date of the Board's decision to accept the member; in cases where membership is part of a working relationship, membership arises on a date agreed as the date of taking up work in a written agreement on working conditions [Paragraph 33 (2) (a)].

§ 25

Fundamental rights and obligations of the cooperative member

(1) A member shall enjoy the following fundamental rights:

(a) participate in the management and control of the cooperative's activities, directly or through the elected authorities;

(b) vote and be elected to the cooperative's bodies;

(c) submit proposals to improve the cooperative's activities, make comments and questions to the cooperative's authorities and be informed of their execution;

(d) to participate in the benefits which the cooperative grants to its members under the Statutes and generally binding legislation.

(2) The Member has the following basic obligations:

(a) comply with the statutes and comply with the resolutions of the cooperative bodies;

(b) to pool resources within the scope of the statutes or the law;

(c) to guarantee any loss of the cooperative in accordance with the statutes;

(d) consolidate and develop cooperative economies, protect and enhance the assets of the cooperative.

(3) In a cooperative where a working relationship is part of a membership, a member shall also have the right and obligation to work under agreed terms. The member shall be entitled to remuneration for the work he has performed in the cooperative; the amount of remuneration depends on the economic performance of the cooperative and the member's personal share thereof. The remuneration shall be adjusted by the cooperative in its inter-cooperative legislation in accordance with the generally binding wage adjustment legislation.

(4) Each member shall have one vote when deciding on the cooperative's bodies, including elections.

Termination of membership

§ 26

In cases where membership is part of a working relationship, membership of the cooperative ceases under labour law (§ 33) and the provisions of § 28 to 31 of this law cannot be applied.

§ 27

In cases where membership is not a work relationship, membership of the cooperative shall cease

(a) the Agreement;

(b) performance,

(c) exclusion;

(d) deaths;

(e) the destruction of the cooperative by liquidation.

§ 28

Agreement

(1) If the cooperative and member agree to terminate membership, membership ends on the agreed date.

(2) The agreement on termination of membership is concluded in writing by the cooperative and by the member. At the request of a member, it shall state the reasons for the termination of membership. A copy of the termination agreement shall be issued by the cooperative to the member.

§ 29

Performance

(1) A member may withdraw from the cooperative on the basis of a written declaration for any reason or without stating the reason. Membership shall expire two months; that period shall begin on the first day of the calendar month following the receipt of the member's written declaration to the cooperative.

(2) The suspension may be withdrawn by a member only in writing and with the consent of the cooperative.

§ 30

Exclusion

(1) The Board of Directors may decide to exclude a member,

(a) where he has been convicted of an intentional offence against the cooperative, its assets or members of the cooperative;

(b) if he has seriously or repeatedly infringed his or her membership obligations laid down by law or statutes.

(2) The Board of Directors may decide to exclude a member only within two months of the date on which it established the reason for the exclusion, but not later than one year from the date on which that reason arose.

(3) If the conduct of a member in which the grounds for exclusion referred to in paragraph 1 (b) can be seen is subject to an investigation by another authority, the period (two months) referred to in paragraph 2 shall begin on the date on which the cooperative became aware of the outcome of the investigation.

(4) The decision to exclude a member from the cooperative shall state the reason referred to in paragraph 1 which cannot be amended retrospectively; the membership shall cease on the date on which the decision of the Board of Directors on the exclusion of the member has been delivered.

Citation	Act No. 176 / 1990 Coll., on Housing, Consumption, Production and Other Cooperatives
Regulation Type	-
Author	-
Collection	Code of Laws

Date of Promulgation	18.05.1990
Effective from	01.06.1990
Effective until	-
Status	Valid

Act No. 176 / 1990 Coll.

Law on housing, consumption, production and other cooperative activities

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