Act No 178 / 2005 Coll.
Act on the abolition of the National Property Fund of the Czech Republic and on the jurisdiction of the Ministry of Finance in the privatisation of the Czech Republic (Act on the abolition of the National Property Fund)
Valid
Law
Effective from 01.01.2006
178
THE LAW
of 28 April 2005
on the abolition of the National Property Fund of the Czech Republic and on the jurisdiction of the Ministry of Finance in the privatisation of the Czech Republic (Act on the abolition of the National Property Fund)
Parliament has decided on this law of the Czech Republic:
REPEAL AND TERMINATION OF THE NATIONAL PROPERTY OF THE CZECH REPUBLIC
(1) The National Property Fund of the Czech Republic (hereinafter referred to as the Fund) is repealed on the date of entry into force of this Act.
(2) All assets of the Fund are transferred to the State on the date on which the Fund is repealed. On the day of the abolition of the Fund, the State shall enter into all the rights and obligations of the Fund from legal relations, including the rights and obligations arising from employment relations involving the Fund.
The Fund shall be transferred to the Ministry of Finance ("the Ministry '). The Ministry is responsible for the management of the property transferred to the State pursuant to § 1 (2). In the legal relations to which the State has entered pursuant to Paragraph 1 (2), the Ministry shall act on behalf of the State.
(1) On the date of the repeal of the Fund, the special rights associated with the exercise of the voting right associated with shares for which the special rights have been determined by the statutes of the public limited companies pursuant to Article IV (2) of Act No. 210 / 1993 Coll., amending and supplementing Act No. 92 / 1991 Coll., on the conditions for the transfer of the State's assets to other persons, as amended by Act No. 264 / 1992 Coll., Act No. 541 / 1992 Coll., and Act No. 544 / 1992 Coll., Act No. 171 / 1991 Coll., and Act No. 282 / 1992 Coll., and amending Act No. 265 / 1992 Coll. the provisions of the statutes of public limited liability companies which determine shares with special rights associated with the exercise of the right to vote shall cease to apply on the date of the repeal of the Fund.
(2) The Protocol on the transfer and take-over of assets which is transferred to the State pursuant to Paragraph 1 (2), which includes the inventory of such assets, is signed by the President of the Fund and the Minister for Finance. As regards immovable property which is entered in the register of immovable property, the Protocol contains the information necessary for the registration of immovable property.
(1) The funds of the Fund which are to be transferred to the State, the funds from the proceeds of the sale of privatised assets, the funds from the profit of the State's participation in commercial companies and the additional revenue transferred from the State budget after the date of entry into force of this Act, are held by the Ministry in special accounts which are subordinate to the general account of the Treasury and are not part of the revenue or expenditure accounts of the State budget.
(2) For the purposes of this Act, additional revenue transferred from the State budget shall mean funds transferred to special accounts where the amount of funds in special accounts is insufficient to cover the expenditure referred to in Section 5 (3).
PRIVATISATION OF STATE PROPERTY
(1) It is for the Ministry, in accordance with a decision given under special legislation (2), after the date of entry into force of this Act, to manage the property of the abolished state enterprises or other state organisations or to exempt parts of such property.
(2) The Ministry has a special record of the assets with which the Ministry is responsible and the privatisation decision is taken.
(3) The assets to be privatised, the proceeds from the sale of such assets, the profit from the State's participation in companies and the additional revenue transferred from the State budget can only be used for the following purposes:
(a) to settle entitlements of authorised persons under specific legislation3);
(b) pursuant to the privatisation decision
1. to be incorporated into, and the treatment of, a limited liability company or limited liability company;
2. for the sale of the assets of an undertaking or part thereof or for the sale of a holding in a company; or
3. to transfer to municipalities, to voluntary communes or regions,
(c) in accordance with the Government's decision
1. to fulfil the obligations of the undertakings to be privatised, in particular those arising from loans secured by lien;
2. to finance expenditure on the activities of state-owned enterprises which have been privatised and which must be retained, in particular because of outstanding entitlements of beneficiaries under specific legislation;
3. to cover the costs of the disposal of environmental damage caused by the firm's activities;
4. to cover the costs and support of investment and non-investment actions linked to the correction of environmental damage caused by mineral mining and the revitalisation of the territories concerned; or
5. to transfer to the state budget
(d) the purchase of assets and holdings for which the State has the right to pre-purchase;
(e) to cover the costs associated with the restitution and privatisation litigation which the Ministry is obliged to pay, to cover the costs associated with the litigation and administrative procedures resulting from the application of Act No. 427 / 1990 Coll., on transfers of State ownership to other legal or natural persons, as amended, and, where appropriate, to cover the related damage caused by the Ministry, and before 1 January 2006 to the Fund, and to cover the costs associated with the settlement of extrajudicial agreements concluded between the Ministry and persons seeking to satisfy their claims against the Czech Republic as a result of malpractice or unlawful action by the Ministry and before 1 January 2006, in respect of transfers of State assets to other persons and recognised by the Ministry for their non-dispute;
(f) to pay the fees associated with the sale of shares on a regulated securities market or through an intermediary;
(g) to cover the costs of the Ministry relating to the negotiation and implementation of privatisation projects and privatisation decisions and to cover the costs of the maintenance and repair of assets, which, after its privatisation, transferred from its owners back to the ownership of the Czech Republic; to cover the costs associated with the management of assets and liabilities following the disappearance of the Czech consolidation agency, as well as the costs associated with the management of assets and liabilities, which have been transferred or transferred to the Ministry in connection with the abolition or demise of other transformation institutions or organisations involved in the preparation and implementation of the privatisation process of the State's assets.
(4) The Ministry shall, in accordance with the procedure laid down in paragraphs 1 and 2, comply with the rules on public aid resulting from the provisions directly applicable to the European Communities.
(1) On the basis of the privatisation decision, the Ministry shall act as a State when concluding contracts and shall take other legal steps to deal with privatized assets, namely:
(a) establish or participate in the creation of equity and other trading companies and deposit in them deposits to which it has committed itself on behalf of the State;
(b) acquire shares on the basis of the State's participation in business in companies and exercise shareholders' rights;
(c) exercise the rights of the shareholder associated with the participation of the State in companies other than public limited liability companies;
(d) conclude contracts for the sale of shares or shares in non-equity companies;
(e) conclude contracts for the sale of undertakings or part of the property of undertakings or for the sale of a part of an undertaking;
(f) conclude contracts for the lease of assets to be privatised for a fixed period, pending its application for privatisation.
(2) The Ministry also settles the rights of authorised persons if the right of ownership of the property was withdrawn in the manner set out in § 2 (3) of Act No. 87 / 1991 Coll., on out-of-court rehabilitation, in the manner specified in the relevant privatisation decision, but not later than 1 year after the approval of the privatisation project. The Ministry shall settle these claims only if the beneficiaries apply them in time and state the name and registered office of the undertaking holding the case and how the property is taken over by the State.
(3) The period for the exercise of the rights of authorised persons provided for in a specific legislation shall be deemed to be maintained if the beneficiary has exercised the right referred to in paragraph 2 with the competent authority in good time.
(4) The Ministry issues non-sovereign debt securities to settle the restitution rights of beneficiaries who have been compensated under Act No. 87 / 1991 Coll., on extrajudicial rehabilitation, as amended, or under Act No. 229 / 1991 Coll., on the treatment of property relations with land and other agricultural property, as amended.
(1) The Ministry will treat the assets for privatisation and the State's assets in companies that cannot be privatised under the privatisation decision in a way that is most appropriate and effective in all circumstances of the case.
(2) The same procedure as in paragraph 1 shall apply to assets for privatisation and to the participation of the State in the commercial companies with which the Ministry is responsible if they have transferred to the State by way of withdrawal from the contract as a result of breach of the contractual obligations of the acquirer of assets for privatisation.
(3) Industrial and other intellectual property rights which have been contractually transferred pursuant to a privatisation decision, the original acquirer shall, when withdrawing from the contract referred to in paragraph 2, transfer to the new acquirer of the assets for privatisation.
(4) In cases where it is referred to in paragraph 1, the Ministry shall revoke its privatisation decision or propose to the Government the withdrawal of its privatisation decision.
The Parliament of the Czech Republic controls the management of the property intended for privatisation and of the funds held by the Ministry under Section 4 in special accounts. The Government submits to the Chamber of Deputies of the Parliament of the Czech Republic information on the privatisation procedure and on the state and use of funds held in special accounts as a separate annex to the state final account.
FINAL AND REPEAL PROVISIONS
By decree, the Ministry sets out the procedure for drawing up the privatisation project and the outline governing the arrangements for the various parts of the privatisation project.
The following shall be deleted:
1. Act No. 171 / 1991 Coll., on the jurisdiction of the authorities of the Czech Republic in the case of transfers of State property to other persons and on the National Property Fund of the Czech Republic.
2. Act No. 285 / 1991 Coll., supplementing Act No. 171 / 1991 Coll., on the jurisdiction of the authorities of the Czech Republic in matters of transfers of State assets to other persons and on the National Property Fund of the Czech Republic.
3. Act No. 120 / 1995 Coll., supplementing Act No. 171 / 1991 Coll., on the Jurisdiction of the Bodies of the Czech Republic in matters of transfers of State assets to other persons and on the National Property Fund of the Czech Republic.
4. Decree No. 324 / 1991 Coll., establishing a binding schedule for the preparation of the privatisation project, as amended by Decree No. 526 / 1991 Coll.
Efficacy
This Law shall take effect on 1 January 2006, with the exception of the provisions of Paragraph 3 (2), which shall take effect on the date of its publication.
Zaoralek v. r.
Klaus v. r.
Paroubek v. r.
1) Act No. 265 / 1992 Coll., on Minutes of Owners and Other Property Rights, as amended.
2) Act No. 92 / 1991 Coll., on the Conditions for Transfer of State Assets to Other Persons, as amended.
3) For example, Act No. 403 / 1990 Coll., on the mitigation of the consequences of certain property injustices, as amended, Act No. 87 / 1991 Coll., on extrajudicial rehabilitation, as amended, and Act No. 229 / 1991 Coll., on the treatment of property relations with land and other agricultural property, as amended.
(3a) Paragraph 9 (8) (c) of Act No. 139 / 2002 Coll., on land and land offices and amending Act No. 229 / 1991 Coll., on the modification of property relations with land and other agricultural property, as amended.
4) The Annex to Act No. 77 / 2002 Coll., on the public limited company České dráhy, state organization Railway Infrastructure Administration and amending Act No. 266 / 1994 Coll., on Railways, as amended, and Act No. 77 / 1997 Coll., as amended, as amended, Act No. 293 / 2004 Coll.
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Regulation Information
| Citation | Act No. 178 / 2005 Coll., on the abolition of the National Property Fund of the Czech Republic and on the jurisdiction of the Ministry of Finance in the privatisation of the Czech Republic (Act on the abolition of the National Property Fund) |
|---|---|
| Regulation Type | Law |
| Author | - |
| Collection | Code of Laws |
| Date of Promulgation | 30.04.2005 |
|---|---|
| Effective from | 01.01.2006 |
| Effective until | - |
| Status | Valid |
The regulation text is for informational purposes only.
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