Government Decree No. 3 / 1953 Coll.

Ordinance on State Trade Enterprises

Valid Effective from 01.01.1953
3.
Government Regulation
of 23 December 1952
State-owned enterprises.
The Government of the Czechoslovak Republic, with the agreement of the President of the Republic pursuant to § 42 (1) of Act No. 241 / 1948 Coll., on the first five-year Economic Plan for the Development of the Czechoslovak Republic (Act on the Five-Year Plan):
§ 1.
Tasks of state-owned businesses.
(1) State-owned enterprises carry out the tasks of socialist trade. They carry out the planned purchase and sale, storage, modification and provision of services in the field of trade and joint catering. This serves to meet the needs of the population and contributes to raising the standard of living of workers.
(2) If this is required by the continuous supply of the population, public trade undertakings shall, in accordance with specific rules, carry out additional production of goods on a daily basis, in the case of purchases of agricultural products.
§ 2.
Establishment of a business.
The Minister for Internal Trade sets up state trade undertakings in agreement with the Minister for Finance. He entrusts them to the administration of some of the national property. If such property falls within the competence of another Minister, the Minister for Internal Trade shall take these measures in agreement with him.
§ 3.
The name of the undertaking and its legal nature.
(1) State-owned enterprises are separate legal entities. The State is the owner of the assets entrusted to the State Trade Company. In matters relating to this property, the state-owned business is acting on its own behalf.
(2) The Minister for Internal Trade will determine the name, date of establishment, place of business, subject matter and circumference of the business. The establishment of an undertaking shall be subject to an instrument specifying the date on which the undertaking takes over the assets incorporated therein; The same goes for changes.
(3) In public books and official registers it shall be registered as the owner of the property or the right held by the State Trade Company in the Administration, the Czechoslovak State, marked by that enterprise. Minutes shall be made on a proposal from the undertaking.
(4) Save as otherwise provided in this Regulation, the provisions on national undertakings shall apply to State-owned enterprises.
§ 4.
Corporate organisation.
The Minister for Internal Trade shall lay down rules for the organisation of public trade undertakings.
§ 5.
The disposal and encumbrance of the company's assets.
(1) The State trade undertaking must not dispose of parts of the assets entrusted to its administration which are intended to be used permanently. The Minister for Internal Trade may authorise the exemption. Negotiations that oppose this ban have no legal consequences.
(2) Third parties may not acquire lien or other rights in kind in respect of the assets referred to in paragraph 1.
§ 6.
Switching commitments.
(1) The undertaking in which the undertaking enters into which the nationalised property has been incorporated, under which conditions the undertaking in the state trade may seek the cancellation of the undertaking or its appropriate adjustment, the way in which the obligations of the overindebted nationalised undertaking, the property of which has been incorporated in the state trade undertaking, as well as the conditions under which the undertaking may contradict the legislation of the former owner of the nationalised undertaking, are governed by the provisions on nationalisation.
(2) The Minister for Internal Trade, in agreement with the Minister for Finance, sets out which undertakings are to be transferred to the State Trade Company on the date of receipt of the national assets incorporated into it. The transfer of liabilities under the first sentence shall exempt the former debtor. Such a transition does not require the consent of the creditor.
§ 7.
Satisfaction of commitments.
(1) Only the assets entrusted to it by the administration which are not intended to be used permanently by the undertaking can be satisfied for the liabilities of the State Trade Company (Section 5).
(2) The assets held by the State Trade Company in its management cannot be claimed to satisfy the State's claims.
§ 8.
Establishment of premises.
State trade undertakings shall establish and abolish joint catering shops and establishments in designated districts as planned and with the agreement of the National Committee. The procedure for setting up, cancelling and changing joint catering establishments shall be laid down by the Ministry of Internal Trade.
§ 9.
Business-financial plan.
(1) The activities of State trade undertakings are determined by its approved commercial and financial plan. The commercial-financial plans of state-owned enterprises follow up on the state plan for the development of the national economy and the state budget.
(2) All workers in a state-owned business must be guided by an effort to fulfil the tasks imposed by the state plan as economically as possible.
Principles for driving.
§ 10.
In a state trade undertaking, each person shall be liable in person for the performance of his or her duties.
§ 11.
The management of the State Trade Company and each part of it shall always be the responsibility of the manager responsible within the framework of its separate decision-making power.
§ 12.
The State Trade Company is obliged to ensure that the achievement of favourable results in the performance of the planned tasks is based on the socialist awareness of workers working in the enterprise and to strengthen their material interest in these results.
§ 13.
Business manager.
(1) The Head of a State Trade Company is the Director, who represents and acts on his behalf. It is directly subordinate to the Director of the relevant Central Administration of the Ministry of Internal Trade. In cases where the undertaking does not belong to a network of undertakings of one of the main administrations, the Director of the State Trade Company shall be subordinate directly to the Minister for Internal Trade. The Director shall be appointed and dismissed by the Minister for Internal Trade.
(2) The Director shall decide the matters of the State Trade Company separately, unless it is stated in individual cases that he needs the prior consent of the Ministry of Internal Trade or of another body to decide. The name of the holding shall be signed by the company manager with his signature.
(3) The Director is personally responsible for the situation of the whole undertaking and the results of its activities.
(4) In the absence or absence of the Director of Enterprise, his full authority shall be represented by a representative in accordance with the rules on which he is issued.
(5) The appointment and removal of the manager of the undertaking shall not be subject to the rules on the co-operation of the race council in the recruitment and assignment of staff to posts, following the rules on the approval of the race council in the dismissal of employees; there is no need for the consent of the body otherwise required in the negotiation and dissolution of the employment relationship to be appointed and withdrawn.
§ 14.
Business management.
(1) State trade undertakings are normally managed by the Ministry of Internal Trade by their main administrations. For the management of individual enterprises which do not belong to a network of undertakings of one of the main administrations, the Minister for Internal Trade may establish corporate governance as an operational component of the Ministry.
(2) The head of the main or corporate administration shall be the Director appointed and removed by the Minister for Internal Trade. He is subordinate to the Minister of Internal Trade and is responsible for his work.
§ 15.
Changes in the breakdown.
(1) The Minister for Internal Trade may exclude a State Trade undertaking from its competence and, in agreement with the relevant Minister, refer it to the measure in accordance with the rules which it is competent to implement.
(2) The Minister for Internal Trade may exclude or transfer from the State Trade Company assets or liabilities in its own field of competence, or in an agreement with the relevant Minister, to take measures in its own field of competence. The transfer of liabilities does not require the consent of the creditor. The Minister for Internal Trade may also include other national assets in the enterprise.
(3) The measure referred to in paragraph 2 shall not be necessary where State trade undertakings have agreed between themselves or with a national undertaking, after a municipal undertaking, on the transfer of assets managed by them, of smaller values which are intended for permanent use. Such an agreement has the effects of disintegration and integration. The amount of the value applicable to transfers under this paragraph shall be determined by the Minister for Internal Trade in agreement with the Minister for Finance and the other Ministers involved.
(4) The Minister for Internal Trade, in agreement with the Minister for Finance, may delegate to the State Trade undertaking a liability belonging to national assets.
The cancellation of a state-owned enterprise.
§ 16.
(1) In an agreement with the Minister for Finance, the Minister for Internal Trade repeals the State Trade Company and also sets out how the assets of the deleted undertaking are to be dealt with. The Secretary of Internal Trade will issue a bill of cancellation.
(2) On the basis of a proposal from the liquidator, the cancellation of the undertaking shall be registered.
(3) The liquidator is appointed and withdrawn by the Minister for Internal Trade.
§ 17.
(1) The liquidator may only monetize the assets of the dissolved state-owned enterprise unless otherwise provided by the Minister for Internal Trade.
(2) The liquidation surplus of the company cancelled will be carried out by the liquidator of the State.
§ 18.
Preservation and other rights.
(1) The lien relating to the assets referred to in Article 4 shall cease without compensation and shall be removed by the library court from the application of the undertaking with reference to this Regulation. The liabilities for which the lien was established remain unaffected.
(2) Paragraph 1 shall not apply to cases in which the Government authorises an exemption on a proposal from the Minister for Internal Trade made in agreement with the Minister for Finance.
(3) Government Decree No 62 / 1951 Coll., on obligations relating to a nationalised property, and Government Decree No 97 / 1952 Coll., on the termination of rights in rem in certain parts of national property, applies also to nationalised commercial property and to state-owned enterprises.
Transitional and final provisions.
§ 19.
Measures taken in conformity with the provisions of this Regulation before the date of its entry into force shall be deemed to have been taken pursuant to it from the date of the measure. National trading undertakings shall become State trading undertakings under this Regulation.
§ 20.
They shall be deleted:
1. § 14 and 16 of Act No. 118 / 1948 Coll., on the organisation of wholesale activities and on the nationalisation of wholesale enterprises,
2. § 9 and 11 of Act No. 120 / 1948 Coll., on the nationalisation of business enterprises with 50 or more active persons; and
3. § 12 and 14 of Act No. 124 / 1948 Coll., on the nationalisation of certain inns and pubs and accommodation facilities,
generally as amended by Act No. 64 / 1951 Coll.
§ 21.
This Regulation shall enter into force on 1 January 1953; they shall be carried out by the Minister for Internal Trade in agreement with the participating members of the Government.
Gottwald v. r.
Zaporocký v. r.
Krajčir v. r.

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Regulation Information

CitationGovernment Decree No. 3 / 1953 Coll., on State Trade Enterprises
Regulation Type-
Author-
CollectionCode of Laws
Date of Promulgation31.01.1953
Effective from01.01.1953
Effective until-
Status Valid
The regulation text is for informational purposes only.
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