Decree No. 2 / 1972 Coll.
Decree of the Federal Ministry of Agriculture and Nutrition on cooperative relations in the development of specialisation and concentration of agricultural production
Valid
Effective from 10.02.1972
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2
DECLARATION
Federal Ministry of Agriculture and Nutrition
of 27 January 1972
on cooperative relations in the development of specialisation and concentration of agricultural production
The Federal Ministry of Agriculture and Nutrition provides, in agreement with the Federal Ministry of Finance, the Federal Price Office and other participating central bodies, pursuant to Sections 38 (2) and 61 of Act No. 49 / 1959 Coll., on Uniform Agricultural Cooperatives:
Preliminary provisions
(1) In order to further develop the specialisation and concentration of agricultural production, cooperation between the agricultural socialist organisations and with other socialist organisations is necessary, which must take place in accordance with social needs and be carried out in the forms which facilitate this development.
(2) Cooperative relations are organised on the basis of voluntary, mutual economic benefits and equality between all member organisations.
Cooperation in which no new organisation is created
The single agricultural cooperatives may conclude cooperation agreements between themselves and, where appropriate, with other socialist organisations (hereinafter referred to as "the Treaties') according to which they undertake in particular that:
(a) jointly plan and provide for a certain activity and, to that end, combine part of their financial or material resources and, where appropriate, labour;
(b) adapt its own economic activity to the division of production programmes which will enable the necessary concentration and specialisation of production activities to achieve a more efficient result;
(c) provide each other with products, works and services in the framework of the agreed cooperation;
(d) they shall act in accordance with the unanimous decision of the Cooperation Council which they shall establish as necessary.
(1) The contract for cooperation requires written forms and is normally concluded for an indefinite period. Validity shall take effect on the date of approval of the district agricultural management authority. Where a member organisation is also to be managed by a branch, the farm management authority shall seek prior approval from the authority superior to that organisation.
If the member organisations are located in different counties, the contract shall be approved by the Ministry of Agriculture and Nutrition of the Republic.
(2) In order to conclude the contract by a single agricultural cooperative, the consent of the members of the cooperative meeting, which may be decided in a valid manner in the presence of at least half of the members of the cooperative, should be required.
(3) Where Member States pool funds, they may enter into a contract in force, provided that the relevant branch of the Czechoslovak State Bank so agrees.
(1) The consent of all the member organisations is required to amend the contract; in that case, the provisions of Paragraph 3 (1) and (2) shall apply mutatis mutandis. The amendment of the contract shall also mean the adoption of a new member organisation.
(2) Only a contract concluded for an indefinite period may be terminated by a member organisation.
The notice period shall be one year on 1 January of the following year, unless a longer period is agreed in the contract.
(1) The Treaty contains:
(a) the names of all the member organisations;
(b) the subject matter of the activity, the manner and conditions of its implementation;
(c) the arrangements for the participation of the member organisations and their rights and obligations resulting therefrom;
(d) provisions on the provision of financial, basic and, where appropriate, other material resources in the form of membership shares; the material performance of the members' shares shall be carried out at the prices applicable at the date of conclusion of the contract;
(e) the provision that new funds taken together will be jointly owned by Member States' organisations, with a value equivalent to the shares made in their acquisitions, and that one of the member organisations, as an operator, will manage the newly acquired funds;
(f) the provision that, in order to ensure the simple reproduction of the basic funds carried as a member and the newly acquired basic funds, the construction fund operator shall establish a source of which is only depreciation of those basic funds;
(g) provisions on the identification of the operator of the joint action and its rights and obligations towards other Member States, in particular its obligation to conduct joint action separately physically and effectively and to account for that activity;
(h) provisions on the number of members of the Cooperative Board, if agreed to be established;
(i) economic relations within the framework of cooperation, where they deviate from normal economic relations;
(j) provisions on working relationships between cooperatives and, where appropriate, staff of member organisations providing for the agreed action;
(k) provisions on property settlement at the time of denunciation by the member organisation (§ 4 (2)) and the termination of the contract (§ 6);
(l) the consequences of the breach of contractual obligations and the manner in which they are implemented, so that none of the participating Member States can obtain an asset benefit which does not belong to it.
(2) In addition to the particulars referred to in paragraph 1, the contract may contain additional provisions.
(3) When the contract is cancelled, a property settlement shall be carried out between the member organisations. The claims of the member organisations resulting from the contract shall be met in proportion to the size of their members' shares or, where appropriate, other agreed principles.
Contract expires
(a) by agreement of all the Member States approved by the Agriculture Management Authority and, where appropriate, by the Ministry of Agriculture and Nutrition,
(b) by decision of the Agriculture Management Authority or, where appropriate, the Ministry of Agriculture and Nutrition.
Cooperation involving a new organisation
Common agricultural holdings
In order to further develop agricultural production, in particular in the production sectors of eggs, poultry and pigmeat, specialised services in plant production as well as other economic activities in the interest of agricultural production, single agricultural cooperatives, including, where appropriate, national agricultural or other socialist organisations, in particular in the agricultural and food sectors, may establish common agricultural holdings as separate cooperative organisations.
Treaty establishing a common agricultural holding
(1) Written contracts are needed to establish a joint holding.
(2) The Treaty establishing a common agricultural holding contains, save as otherwise provided in Section 26,
(a) the names of all single agricultural cooperatives or, where appropriate, of State agricultural or other socialist organisations concluding the contract;
(b) the subject matter and scope of the activities of the joint holding;
(c) the name and registered office of the joint holding;
(d) provisions on the bodies of the common agricultural holding;
(e) provisions on the supply of products, works or services provided by Member States for the purpose of ensuring the operation of the joint agricultural holding;
(f) provisions on the amount and manner in which Member States' shares and loans are granted, the amount of interest thereon and the purpose and extent of their application;
(g) the rights and obligations of the member organisations;
(h) provisions on the use of profits and funds;
(i) provisions on labour relations and on the remuneration of workers and the security of labour on the common agricultural holding;
(j) provisions on the consequences of breach of contractual obligations and the manner in which they are implemented.
(3) Depending on the nature and size of the joint holding, the local conditions and needs of the member organisations, the contract establishing the joint holding may contain further provisions.
(4) The participation of the single agricultural cooperative in this Treaty is approved by the members' meeting of the cooperative; The presence of at least half of the cooperative members shall be required for its valid resolution.
(5) In order to conclude a contract establishing a joint holding, the approval of the district management authority should be required; if the contract is also concluded by a State Socialist organisation, approval of the Ministry responsible shall be required.
(6) The written agreement establishing the Joint Undertaking shall be valid if agreed by the competent Ministry of Agriculture and Nutrition. If the member organisations pool funds, the request for consent must also be supported by the relevant branch of the Czechoslovak State Bank.
(7) Member States are bound in their mutual relations from the date of signature of the contract.
Establishment of a joint agricultural holding
The joint agricultural holding shall be established on the date of its registration; from that date may acquire rights and undertake.
(1) The agreement of all its member organisations is necessary to amend the contract establishing the joint holding. Paragraph 8 (5) and (6) shall apply mutatis mutandis; a change of contract means the adoption of a new member organisation.
(2) The adoption of a new member organisation requires the agreement of the College of representatives of the Joint Undertaking and the signature of a contract acceding to the member organisation.
Authorities of the joint agricultural holding
(1) The bodies of the joint agricultural holding are the Board of Representatives, the Board of Directors and the review committee.
(2) The Assembly of Representatives is the highest body of the Joint Undertaking. As a general rule, its members are chairmen of single agricultural cooperatives and, if the member organisations are also state socialist organisations, the directors of these organisations.
(3) The term of office of the Board of Directors and the review committee is usually five years.
(4) The functions of representatives of the member organisations in the College of Representatives, the Board of Directors and the review committee are fair. The members of these bodies shall be reimbursed by the Joint Agricultural Undertaking only by the loss of remuneration for the work and actual expenses associated with the performance of the duties.
Assembly of Representatives
(1) The Board of Representatives shall be responsible for:
(a) approve the economic plans of the joint holding;
(b) approve the annual accounts of the Joint Undertaking, the accounts and the financial settlement with the Member States;
(c) approve the rules of organisation and, after prior agreement of the competent authority of the Revolutionary Trade Union Movement, the rules of employment of the joint holding;
(d) to decide on the increase in membership;
(e) to decide on the use of resources from the annual profit or loss (Section 21);
(f) to decide on the arrangements for the reimbursement of any losses incurred by the Joint Undertaking;
(g) to discuss the admission of new member organisations and to discuss requests for withdrawal from the common agricultural holding;
(h) elect a chairman, a board of directors, a review committee from among its members and, after prior agreement of the Agriculture Management Authority, instruct the Director (absolve),
(i) appoint a liquidator of the joint agricultural holding when it has decided to terminate;
(j) to draw conclusions on the review reports if they are not entrusted to the Board of Directors,
(k) to decide on the minimum amount of funds;
(l) decide to exclude a member organisation;
(m) decide on the abolition of the Joint Undertaking;
(n) decide on other issues which they reserve.
(2) Each member organisation shall send one representative to the College of Representatives. Where the number of representatives in the College would be less than 9, each member organisation shall send more than the same number of representatives.
(3) The Board of Representatives shall be convened by its chairman as necessary, but at least once a year, at least one week in advance, in writing, specifying the place, time and agenda. The Chairman of the Board of Representatives shall convene a College of Representatives within one month at the latest if at least one third of the members of the Board of Representatives so request, the review committee or, where appropriate, the Director of the Joint Undertaking on the grounds of the urgent interests of the Joint Undertaking.
(4) The Chairman of the Board of Representatives shall invite representatives of the Agriculture Management Authority to each meeting of the College; representatives of the relevant branch of the Czechoslovak State Bank may also be invited to the meetings or other representatives of interested organisations.
(5) The Assembly of Representatives may give a valid resolution with the participation of an absolute majority of its members. The approval of an absolute majority of the members present shall be required for the validity of the resolutions of the Board of Representatives. When voting, each member shall have one vote. In the event of a tie, they shall pay for the proposal for which the President has voted. A two-thirds majority of all members of the Board of Representatives shall be required for the validity of the decisions on the exclusion of the member organisation.
Board of Directors
(1) The Board of Representatives shall elect from among its members 5 to 15 members of the Board of Directors, which shall deal with the matters of the Joint Undertaking during the period between the meetings of the Board of Representatives, except those referred to in Article 12 (1). The Chairman of the Board shall always be the Chairman of the Board of Representatives. The Board of Directors shall be convened once a month by its chairman, the way in which the Board of Representatives shall be convened and the same shall apply.
(2) Paragraph 12 (5) applies mutatis mutandis to the decisions of the Board of Directors.
Revision Commission
(1) The Revision Commission is the control body of the joint holding and is responsible only for the College of Representatives. The review committee shall be at least three members; He shall elect a chairman from among himself.
(2) Only members of the Board of Representatives may be members of the review committee. Members of the Board of Directors may not hold a post on the review committee.
(3) The Revision Committee shall be convened by its chairman; The review committee shall check all activities of the Joint Undertaking, in particular production and economic and respect for financial discipline.
(4) Any revision, examination or review of the complaint shall be the subject of a report by the review committee indicating the deficiencies identified with the proposal for their removal. The report shall be submitted to the Board of Representatives (Board of Directors) for consideration.
Director of the Joint Undertaking
(1) The Director in his or her jurisdiction
(a) manage and be responsible for the construction and operation of the joint agricultural holding;
(b) be responsible for implementing the resolutions of the Board of Representatives (Board of Directors), respect for wage, financial and planning discipline, labour safety and health protection rules and other legislation;
(c) submit draft five-year and annual plans to the College of Representatives and ensure that they are implemented after approval;
(d) submit to the Board of Representatives a proposal for the distribution of profits and, where appropriate, a proposal for reimbursement of losses incurred by the Joint Undertaking;
(e) preparing other documents for the meetings of the Board of Representatives (Board of Directors);
(f) participate in the meetings of the Board of Representatives and the Board of Directors of the Joint Undertaking with an advisory vote;
(g) submit to the College of Representatives a draft of the Rules of Organisation and the Conditions of Employment;
(h) submit annual accounts to the College of Representatives and be responsible for creating conditions for the economic and rational functioning of the information system, including the proper keeping of accounts;
(i) ensure and control the proper management and protection of the assets of the joint agricultural holding;
(j) receive and release staff of the joint holding, establish their salaries, grant premiums and remuneration; the admission and dismissal of managers requires prior approval from the Board of Directors;
(k) ensure that the level of management of the joint agricultural holding is continuously increased;
(l) ensure the professional qualifications of all workers.
(2) The Director shall act on behalf of the Joint Undertaking within the limits of the powers conferred on him. Documents relating to legal acts establishing the rights and obligations of the joint holding shall be signed by the Director and the President, or by an authorised member of the Board of Representatives (Board of Directors), as appropriate; other documents shall be signed by the Director.
(3) The Director shall be represented in his absence by a representative appointed by the Board of Representatives.
(4) The resolutions of the Board of Representatives and the Board of Directors which are contrary to the general legislation are invalid. Where such authorities insist on their implementation, the Director shall draw the attention of the Agriculture Management Authority to that effect. That authority shall suspend the enforcement of the order.
Joint farm workers
(1) The staff of the joint agricultural holding shall be recruited primarily by persons from among the staff of the member organisations; their working relationships shall be governed by the provisions of the Labour Code and its implementing provisions.
(2) Where members of the single agricultural cooperatives are admitted to the joint holding, their membership of the cooperative shall be maintained with the agreement that they shall be released from their working obligations towards the cooperative for the duration of their work on the common agricultural holding; other rights and obligations arising from membership of the cooperative shall remain unaffected.
(3) The remuneration of staff of the Joint Undertaking shall be governed by the rules in force. *)
Rights and obligations of the member organisations on the common agricultural holding
(1) Member States shall enjoy the following rights:
(a) to send representatives to the College of Representatives;
(b) to participate in the activities of the joint agricultural holding to the extent laid down in the contract;
(c) to participate in the collection of products, services and works of the joint agricultural holding to the extent laid down in the contract;
(d) interest on the member interest and loans, unless otherwise specified in Paragraph 26;
(e) to participate in the distribution of the profits of the joint agricultural holding;
(f) request the review committee to examine the deficiencies in the activities of the joint agricultural holding.
(2) Member States have the following obligations:
(a) fulfil the obligations arising out of the contract establishing the common agricultural holding;
(b) to lodge a member's share;
(c) contribute to the payment of any losses incurred in the current year and reported in the annual accounts of the Joint Undertaking;
(d) to pay the deficit recorded on the cancellation of the joint holding, but not more than twice the Member State's share.
Management of the joint agricultural holding
The common agricultural holding shall operate according to the economic plans and the principles, rules and directives applicable to economic organisations in the agricultural and food sectors.
Resources for the financing of the Joint Undertaking
(1) The sources of financing for the Joint Undertaking, unless otherwise provided in Section 26, are:
(a) members' shares;
(b) the funds obtained from the activities of the Joint Undertaking;
(c) loans from the member organisations and the farm management authority;
(d) loans granted by a branch of the Czechoslovak State Bank under the relevant regulations;
(e) contributions, subsidies and subsidies granted by the State under the relevant rules.
(2) Member States' shares and loans from member organisations may be remunerated at interest rates generally applicable to deposits in cash. The Treaty may provide that member shares may be remunerated at a rate higher than the applicable interest rates, but not more than 1%.
Member shares
(1) Member States shall pool material and money for the construction and operation of joint farms, in particular in the form of membership shares. The material resources shall be transferred by the member organisations to the joint holding and their value shall be quantified as a member holding.
(2) The amount of the members' shares shall be laid down in the contract establishing the common agricultural holding, taking into account the size of the land of the Member States or of others in the contract establishing the common agricultural holding set out in the criteria.
(3) The members' shares shall be composed within the time limits laid down in the contract and shall be used in particular for the fitting-in and putting into service of the Joint Undertaking. The actual performance of the members' shares shall be carried out in the quantities and types agreed in the contract and in the prices according to the rules in force on the date of the establishment of the joint agricultural holding and, where appropriate, on the date of the establishment of membership of the common agricultural holding.
Use of profit
(1) The common agricultural holding is obliged to use profit
(a) in particular to pay taxes (levies);
(b) to fulfil other obligations.
(2) Once the payments referred to in paragraph 1 have been made, the joint agricultural holding shall use the profits in particular for the creation and addition of funds (Section 22 (1)) or, where appropriate, other funds set up with the agreement of the competent Ministry of Agriculture and Nutrition, as agreed with the competent Ministry of Finance.
(3) The balance of profit after the payments made pursuant to paragraphs 1 and 2 shall be distributed by the College of Representatives according to the value of the supplies of the products and, where appropriate, by the amount of the members' shares; the details of such a method of distribution of profits are laid down in the contract.
Joint holding funds
(1) When establishing, creating, supplementing and using the Funds, the common agricultural holdings shall, unless otherwise provided for in Article 26 (5), apply mutatis mutandis under specific rules. *)
(2) The depreciation of the basic funds is used by the Joint Farm for allocations to the construction fund.
Termination of membership
(1) Membership of the common agricultural holding shall cease to exist by the withdrawal, exclusion or demise of a member organisation or by the abolition of a joint agricultural holding.
(2) A member organisation may withdraw from the Joint Undertaking after prior written notice given on 1 January, with an annual notice of notice, unless a longer period is agreed in the contract.
(3) A member organisation may be excluded if it does not consistently fulfil its obligations towards the common agricultural holding. Exclusion shall be decided by the College of Representatives after consultation with the Agriculture Management Authority. A minimum of two-thirds of the votes of all members of the Board of Representatives shall be required for the validity of the resolution of the Board of Representatives on exclusion.
(4) The joint agricultural holding shall, no later than one year after the termination of membership, carry out a legal settlement with the former member organisation.
Repeal of the Joint Undertaking
(1) The joint agricultural holding may be abolished on the basis of a decision of the College of Representatives, with the agreement of the competent Ministry of Agriculture and Nutrition. The Ministry of Agriculture and Nutrition may also decide to abolish the joint farm if the joint agricultural holding is grossly or repeatedly in breach of a contract of establishment or legislation, or if the other activities of the joint farm are not socially effective. When the Joint Undertaking is abolished, the competent Ministry of Agriculture and Nutrition shall designate a liquidator. During the period of disposal, the Joint Undertaking shall use its name with an addition indicating liquidation.
(2) After the appointment of the liquidator, the authorities of the joint holding cease to operate. The liquidator shall act on behalf of the liquidated joint venture and notify the competent court of its liquidation for registration in the company register and the relevant branch of the Czechoslovak State Bank.
Procedure for the destruction of the joint holding
(1) The liquidator shall draw up the winding-up balance sheet of the joint holding and shall be obliged to ensure the proper keeping of the accounts of the joint holding in liquidation.
(2) The liquidator completes the negotiations of the joint holding. It carries out the legal acts necessary for the management of the liquidated assets. The proceeds of the liquidation shall be gradually met by each undertaking in the following order:
(a) arrears of workers' wages;
(b) costs incurred in the event of liquidation;
(c) arrears of taxes, levies, fees and credits with accessories provided by the Czechoslovak State Bank branch;
(d) obligations arising from the wrongful acquisition of assets;
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Regulation Information
| Citation | Decree of the Federal Ministry of Agriculture and Nutrition No. 2 / 1972 Coll., on cooperative relations in the development of specialisation and concentration of agricultural production |
|---|---|
| Regulation Type | - |
| Author | - |
| Collection | Code of Laws |
| Date of Promulgation | 10.02.1972 |
|---|---|
| Effective from | 10.02.1972 |
| Effective until | - |
| Status | Valid |
The regulation text is for informational purposes only.
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