Act No. 279 / 1948 Coll.

The Act on Velkodzibuční společnost in the field of food

Valid Effective from 18.12.1948
279.
Law
of 2 December 1948
on a large-scale food business.
The National Assembly of the Czechoslovak Republic decided on the following Act:

Oddíl I.

The scope and legal circumstances of the Grand Undertaking.
§ 1.
A Velkodzibuční podniku, a registered limited-liability fellowship, with its head office in Prague and a regional authority, as a cooperative, for Slovakia, with its head office in Bratislava ("the Velkodzibuční podnik '), is hereby established.
§ 2.
(1) It is for the Grand Undertaking to:
(a) the exclusive right to purchase and carry out wholesale activities for the internal market of foodstuffs and beverages and other edible foods (hereinafter referred to as "foodstuffs") from industrial and craft producers and importers;
(b) to buy and sell in large quantities on the internal market goods which are normally sold in mixed goods shops;
(c) to operate, within the scope laid down by the Ministry of Internal Trade in an agreement with the Ministry of Nutrition, an additional production activity normally carried out by distribution undertakings (such as processing, treatment, bottling, packaging, etc.).
(2) The Government may provide for a regulation on what is meant by food under this law.
(4) In an agreement with the Ministry of Food, the Ministry of Internal Trade may provide for exemptions from the exclusive law referred to in paragraph 1 (a) and modify the consequences thereof; on a case-by-case basis, the Grand Undertaking may itself authorise an exemption from its exclusive right (paragraph 1 (a).
(5) The Ministry of Internal Trade shall declare measures of a general nature taken pursuant to paragraphs 1 and 4 in the Official Journal.
§ 3.
The wholesale undertaking operates under Paragraph 2 (1) mainly through cooperatives, national undertakings and its own business facilities.
§ 4.
A large enterprise does not need an authorisation to operate under this law which would otherwise be required under the relevant provisions of the Trade Code (Trade Code) or other trade legislation. The wholesale undertaking shall notify the subject matter of its business of the Office (Section 145 (d), Section 242 (z)), which shall indicate it in a separate section of the Trade Register. The Government shall adjust the details by means of a regulation, specifying in particular the extent to which the provisions of the Trade Code (Trade Code Act) apply to the Grand Trade Company.
§ 5.
(1) The Grand Undertaking shall ensure by its own review bodies that the provisions of this Act and the regulations issued pursuant to it are respected, as well as that of the Ministry of Internal Trade's orders and prohibitions (Section 10).
(2) Persons co-operating in the performance of the tasks of the Grand Undertaking are required to allow the review bodies to be issued with a certificate issued by the Ministry of Internal Trade to consult the trade books, documents and correspondence, to provide the requested explanations to those authorities and to allow them to enter all commercial, operational and warehouse rooms and premises. In the exercise of these powers, the Revision Authorities are required to investigate the rules on the protection of the freedom of persons, home and secrets of letters and to maintain confidentiality regarding all the facts which they learn in the performance of their duties, unless they are mandatory reports to the Grand Board or public authorities and courts. They shall not use knowledge of these facts for purposes other than those under this law.
§ 6.
(1) Cooperatives, national undertakings or other legal persons whose activities fall within the competence of, or have a relationship with, the Grand Undertaking may be members of the Grand Undertaking.
(2) There is no legal entitlement to membership; However, a candidate for membership may be refused only with the consent of the Ministry of Internal Trade.
§ 7.
(1) The administrative bodies of the Velkodzibuční podnik are the Chairman and two Vice-Presidents, the Board of Directors, the Supervisory Board and the General Assembly.
(2) The President and the two Vice-Presidents are appointed and dismissed by the Government on a joint proposal by the Ministers for Internal Trade and Nutrition.
(3) The Board has thirty members, including the President and two Vice-Presidents, of which nine from Slovakia. Thirteen members are appointed and withdrawn by the Government on a proposal from the Minister for Internal Trade, made in agreement with the Minister for Food and after hearing the Single Trade Organisation. Fourteen members shall be elected by the General Meeting from among themselves. Until the election of the first members of the Board of Directors is carried out by the General Meeting, the Government shall appoint and dismiss those members on a proposal from the Central Board of Cooperatives. Within six months of the start of the operation of the Grand Undertaking (Paragraph 18), the President shall convene the first general meeting to choose 14 members of the Board of Directors. On the day following the election, the elected members of the Board of Directors shall take the place of members appointed by the Government in accordance with the provisions of the fourth sentence.
(4) The Supervisory Board has 15 members, including the Chairman, of which five from Slovakia. Eight members, including the President, shall be appointed and dismissed by the Government, on a proposal from the Minister of Internal Trade, in agreement with the Minister of Nutrition, seven members shall be elected by the General Assembly from among themselves. For the period up to the election of the seven members of the first Supervisory Board by the first General Meeting, the members appointed by the Government under the previous sentence shall act as Supervisory Board.
(5) The procedure referred to in paragraphs 3 and 4 also establishes the necessary number of alternates of the members of the Board of Directors and the Supervisory Board.
(6) The General Meeting of the Grand Undertaking consists of representatives broadcast by members of the Grand Undertaking (Section 6, paragraph 1). At the general meeting, each member of the Grand Prix is entitled to one vote without regard to the number of shares.
(7) The Regional Authority of the Grand Undertaking in Bratislava is managed by the President, the Vice-President, the eight-member board, including the President and Vice-President, the three-member Supervisory Board and the General Meeting. The President, Vice-President, three members of the Board of Directors and two members of the Supervisory Board shall be appointed. Paragraphs 2 to 6 shall apply mutatis mutandis.
§ 8.
(1) The wholesale undertaking operates under Paragraph 2 (1) of the Commercial Business Principles.
(2) Unless otherwise specified, the core capital of the Velkodzibuční podnik constitutes the net capital which, pursuant to Paragraph 11, is transferred to the Velkodzibuční podnik.
(3) Balance surpluses of the Velkodzibuční společnost, if they are not allocated to the reserve fund according to the statutes, are paid to the State.
§ 9.
(1) The legal situation of the Grand Undertaking, in particular the ratio of the head office to the regional authority in Slovakia, will be adapted by the Government by means of a regulation.
(2) Save as otherwise provided for in this Act or in the provisions of this Act, the provisions of Law of 9 April 1873, No 70 of 9 April 1873, on profitable and economic communities and, as regards the regional authority, the provisions of Article XXXVII / 1875 on the Commercial Law, as amended by the Regulations, shall apply.
(3) The rules on the compulsory organisation of cooperatives and their revision shall apply only to the Whaling undertaking as long as the statutes so determine.

Oddíl II.

State control.
§ 10.
(1) The Ministry of Internal Trade shall keep an eye on the Grand Trade Company and may review its activities and operations at any time. The Ministry of Internal Trade may give binding orders and bans to the Grand Undertaking in its field of competence. If irregularities are found to seriously jeopardise the proper operation of the Grand Undertaking, if the competent authorities are not established, or if the Grand Undertaking does not perform its duties properly, the Ministry of Internal Trade may take appropriate measures to conduct its administration in the interim.
(2) The management of the Grand Undertaking and its components is subject to control by the Supreme Accounting Audit Office.
(3) In order to acquire, dispose and load real estate in excess of CZK 5 million, the Grand Trade Company needs the approval of the Ministry of Internal Trade granted in agreement with the Ministry of Finance.

Oddíl III.

Dissolution of services and incorporation of property.
§ 11.
(1) The date laid down by the Minister for Internal Trade by the Regulation will be the date of entry into the Grand Trade Company and the following shall cease:
1. Wholesale Company of Cooperatives, registered collective with limited liability in Prague,
2. "NPOD" means the shopping centre of food cooperatives in Bratislava,
3. the profit-making economic communities of mixed goods retailers (merchant cooperatives), which will be designated by the Ministry of Internal Trade in the Official Gazette.
The rights and obligations of the services referred to in paragraphs 1 to 3 shall, with the exception of those referred to in Paragraph 12 (2) of the Universal Succes, be transferred to the Grand Trade Company. As regards their entitlement to the activities of production and distribution, they are transferred to a Velkodzibuční podnik to the extent provided for by the Ministry of Internal Trade in an agreement with the Ministry of Food.
(2) In an agreement with the Minister of Finance, the Minister of Internal Trade may include in the Velkodzibuční podnik assets nationalised under the Act of 28 April 1948, No 118 Coll., on the organisation of wholesale activities and on the nationalisation of wholesale enterprises which serve to operate wholesale activities in the field of food and goods normally sold in mixed goods stores. In addition, in an agreement with the Ministers of Nutrition and Finance, it may include parts of the assets of the national enterprises established pursuant to the Decree of the President of the Republic of 24 October 1945, No 101 Coll., on the nationalisation of certain food industry enterprises, as amended by the Act of 28 April 1948, No 115 Coll., which serve to conduct wholesale activities in the field of food or goods normally sold in mixed goods.
(3) The Minister for Internal Trade may impose on the owner of a wholesale undertaking whose activity has been ceased pursuant to § 7 of Act No. 118 / 1948 Coll., to transfer parts of property, in particular the stock of goods, stopped by the wholesale undertaking, for compensation under § 13 of the Act No. 118 / 1948 Coll., to the ownership of the Velkodzibukom.
(4) The Minister for Internal Trade, in agreement with the Minister of Finance and after hearing the President of the Seating Office, may include in the Velektodibudní společnost, or parts thereof, confiscated under the decree of the President of the Republic of 25 October 1945, No 108 Coll., on the confiscation of hostile property and National Recovery Funds, as well as property or parts thereof, administered pursuant to Paragraph 16 of the Act of 16 May 1946, No 128 Coll., on the nullity of certain acts of illegality and of claims of such invalidity and other interventions in respect of property, as amended by the Law of 7 April 1948, No 79 Coll.
(5) Funds incurred
(a) import and export measures; or
(b) price measures on the internal market - if they serve or could serve price interventions -
and are managed by one of the departments referred to in paragraph 1, transferring to the State. The Ministry of Finance shall determine in an agreement with the Ministry of Internal Trade which means the provisions of the first sentence; the government shall determine how such funds are to be handled.
(6) The provisions of Sections 10, 11 and 12 of Act No. 118 / 1948 Coll. apply mutatis mutandis to the entry of the Grand Undertaking into obligations belonging to the national property and to the provisions of the Act No. 118 / 1948 Coll.
§ 12.
(1) The members of the departments appointed in § 11 (1) shall, unless contrary to the provisions of § 6 (1), become members of the Grand Undertaking without a membership application on the date on which the competent department enters the Grand Undertaking.
(2) The persons who become members of the Grand Undertaking referred to in paragraph 1 shall be accounted for on the racing shares of the Grand Undertaking their previously paid-up racing shares in the cooperatives which entered the Grand Undertaking (§ 11 (1)). Persons who are members of such cooperatives and who are not covered by the provisions of paragraph 1 shall receive from the Velkodzibuční podnik a full compensation for their membership in respect of the department to which they are subject the amount of their paid-up membership recognised on the date on which the departments are transferred to the Velkodzibuční podnik. The date of incorporation shall cease, with the exception of claims under the provisions of the preceding sentences, rights and obligations which would otherwise result from participation in a cooperative or company under the law or social (social) contract (s).
(3) The Ministry of Internal Trade, in agreement with the Ministry of Finance, shall adjust the method of settlement of holdings in membership shares in accordance with the provisions of paragraph 2, the first sentence and the method of settlement of claims in accordance with paragraph 2, the second sentence and the maturity of the claims thus established.
§ 13.
(1) Staff of departments covered by the provisions of Paragraph 11 (1) shall become staff of the Grand-Prix undertaking on the date on which they enter the Grand-Prix undertaking; the rights and obligations arising from their employment relationship shall only be transferred to the Grand-Prix undertaking unless otherwise specified.
(2) If the obligations under the employment (service) contracts are not in line with the needs of the Grand Prix, the relevant provisions of these contracts will be amended by agreement; If no agreement is reached, employment contracts shall be terminated at the legal notice of notice. In an agreement with the Ministry of Internal Trade, the Ministry of Social Welfare will examine the claims of all employment (service) contracts and adjust employee benefits to meet the general principles of wage policy. The Staff Regulations to be issued to the staff of the Velkodzibuční podnik shall be subject to the approval of the Ministry of Social Welfare in agreement with the Ministry of Internal Trade.
(3) The provisions of the Act of 15 April 1948, No 99 Coll., on national insurance, in particular Sections 268, 5 and 270 of the Act of 15 April 1948, on National Insurance, and in particular Sections 268, 5 and 270, paragraph 9, apply to employees' claims under contracts and pension arrangements of their family members. Inproportionately high rest and provision benefits paid out of the resources of the departments appointed in Section 11, or of their upper-end funds, may be reduced by agreement to an appropriate level; If no agreement is reached, the arbitration panel established under the Law of 21 November 1946, No 228 Coll., shall decide on the arbitration courts for adjusting certain obligations of national undertakings.

Oddíl IV.

General provisions.
§ 14.
The authorities and other public authorities and the organisation of economic and interest self-government shall be obliged to cooperate in the implementation of this law and of the rules issued pursuant to it.
§ 15.
The entries in the public books and registers necessary to indicate the facts arising from the implementation of this Act and the provisions for its implementation issued shall be made by the courts and public authorities, acting on a proposal from the Grand Undertaking, with reference to that Act, after the provisions for its implementation issued.
§ 16.
The legal acts, documents and official acts required for the implementation of Sections 11, 12 and 15 shall be exempt from fees and charges.

Oddíl V.

Provisions criminal, transitional and final.
§ 17.
(1) The acts and omissions which are contrary to the provisions of this law or to the provisions laid down therein shall be punishable, unless the offence is a criminal offence in a court of law, as an administrative offence of up to a fine of CZK 1,000,000, or by a prison (lock) within one year or both. In the event of non-compliance with the fine, a replacement prison sentence (lock-down) shall be calculated in accordance with the rate of guilt within one year. If both sentences are imposed at the same time, the punishment on the free side, together with the prison detention penalty, must not exceed one year.
(2) Where an offence has been committed in the course of trade and the offender has already been lawfully punished for the conduct or omission referred to in paragraph 1, the loss of the trade licence may also be declared, either on time or forever.
(3) Save as otherwise provided in this law, the provisions of the provisions on administrative criminal law and proceedings in the field of maintenance shall apply.
§ 18.
The Minister for Internal Trade shall, in an agreement with the Minister for Food, lay down a regulation in which, in the case of the extent to which the Grand Undertaking shall take up business. The rights and obligations arising from the provisions of Sections 2 to 5 arise from the date of the entry into force of the Regulation and to the extent specified by it.
§ 19.
The Decree of the President of the Republic of 27 October 1945, No. 118 Coll., on measures in the management of the maintenance economy, Act of 16 January 1896, No 89 Coll. of 1897 on trade in foodstuffs and certain items used and government regulations of 7 May 1920, No 377 Coll., on production and trade in food substitutes, as amended by the Decree of 9 December 1920, No 640 Coll., remain unaffected.
§ 20.
This Act shall take effect on the day of its publication; it shall be carried out by the Minister of Internal Trade in agreement with the Minister of Nutrition and other participating members of the Government.
Gottwald v. r.
Dr John v. r.
Zaporocký v. r.
Krajčir v. r.

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Regulation Information

CitationAct No. 279 / 1948 Coll., on Velkodziboční společnost v rozhodých obchodých
Regulation Type-
Author-
CollectionCode of Laws
Date of Promulgation18.12.1948
Effective from18.12.1948
Effective until-
Status Valid
The regulation text is for informational purposes only.
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