Government Decree No. 35 / 1951 Coll.

Regulation establishing the Statute for Municipal Enterprises

Valid Effective from 01.01.1951
35.
Government Regulation
of 10 April 1951
declaring the status of municipal enterprises.
The Government of the Czechoslovak Republic orders pursuant to § 50 of Act No. 167 / 1950 Coll., on Municipal Enterprises, and § 4 and 11 of Act No. 104 / 1950 Coll., on the Financing of National and Municipal Enterprises:
Čl. I.
The Statute of municipal undertakings shall be published in the Annex to this Regulation and shall form part thereof.
Čl. II.
This Regulation shall enter into force on 1 January 1951; They shall be implemented by the Home and Finance Ministers in agreement with the participating members of the Government.
Zaporocký v. r.
Nosek v. r.
Cable v. r.

Annex to Government Regulation No 35 / 1951 Coll.
Statute of municipal enterprises.

Community enterprises and their mission.
(1) Community undertakings are a form of state enterprise. Their mission is to contribute, under the single economic plan, to the provision of services and production to meet the living needs of the population, to uncovering and exploiting local resources, to the rise of national wealth, to raising material and cultural levels, and to consolidating the power of the working people.
(2) Communal enterprises grow up from the needs of the people, serve the people, are the subject of their interest and care and are controlled by them.
(1) Community undertakings are focused on entrepreneurship of the importance of local (regional) services and local production, in particular maintenance and repair activities, thus meeting the daily needs of workers. They also complement the activities of national enterprises in those fields for which the form of communal enterprise is more efficient and cost-effective or where it requires a single economic plan to be met. The communal enterprises are working with other parts of the socialist sector.
(2) By concentrating and organising most of the services and production that have been dispersed so far and their effective deployment, communal enterprises make the conditions for increasing labour productivity and, by their attractive influence, have a favourable effect on the socialisation process of private business.
(1) The exercise of senior management and supervision of municipal enterprises is entrusted by the State, in particular to the national committees, i.e. the authorities of state authority and administration, which are in close contact with the people.
(2) The Plenary Session of the National Committee monitors the activities of municipal enterprises and ensures their successful development. The performance of the tasks of communal enterprises shall also be discussed in talks with the people and in the Councils of the People's Administration.
(3) National committees shall be set up, as appropriate, by the Commissions on Community Enterprise Affairs.
The communal enterprises carry out their mission through the collective efforts of all their workers, i.e. workers, technicians and officials, who have been brought together by labour discipline and for the leadership of the most conscious in cooperative cooperation, and with mutual assistance they carry out the tasks of building socialism.

The creation of municipal enterprises, their legal nature and circumstances.
Establishment of a business.
The communal undertaking shall be set up by a national committee under whose immediate management and supervision the undertaking shall be operated (the leading national committee) on the basis of an examination of local (regional) needs. The establishment of a municipal undertaking is accompanied by important economic and legal consequences; It should therefore take place with the agreement of the Supervisory National Committee (Office). In order also to ensure that the establishment of a communal undertaking is consistent with the single economic plan, the supervising national committee shall discuss the matter with the Regional Inspectorate of Communal Enterprises (hereinafter referred to as the Regional Inspectorate).
Individual municipal enterprises and their activities.
(1) Communal undertakings are normally set up as undertakings of one national committee (individual municipal undertakings). Their activities are also primarily aimed at meeting the needs of the population in the district of the head of the National Committee (local local [municipal, urban], district and regional).
(2) In order for a municipal undertaking to set up establishments outside the district of the head of the national committee, the resolutions of that national committee and the agreement of the national committees concerned of the same degree are required. Their agreement may be replaced by the agreement of the Joint Supervisory National Committee (Office).
Regional municipal enterprises.
(1) Where the operation of a municipal undertaking, service provider or locally bound supply affects the interests of the population in a wider area than that of the head of the national committee, the leading national committee may take part in the advisory and auxiliary participation of the national committees in that area (regional community enterprise).
(2) The admission of national committees to advisory and auxiliary participation shall be carried out by agreement of the Head of the National Committee with participating national committees, following decisions of the Supervisory National Committee (Office).
(1) The Head of the National Committee of the Regional Municipal Enterprise shall inform the participating National Committees of the relevant facts and measures concerning the municipal enterprise, consult them and accept their initiative, criticism and good opinion. It may also entrust them with certain tasks of its own competence, in particular the exercise of supervisory powers in their area of competence. The participating national committees may request information from the head of the national committee on a local regional enterprise, support the leading national committee in the performance of its tasks and facilitate its contacts with the people. They may request supervision by the Supervisory National Committee (Office) in cases where they consider that the important interests of the regional municipal undertaking or those to which the undertaking is to serve are being harmed or threatened.
(2) In order to inform and hear participating national committees, a commission may be set up from among their representatives, while one representative may also represent several national committees.
Recruitment of subordinate national committees at municipal regional and regional enterprises.
As with regional communal enterprises, subordinate national committees may also be recruited for advisory and auxiliary participation by a municipal district or regional enterprise whose operation affects an increased degree of interest of the population of certain municipalities or districts in the district of the head of the national committee.
Joint communal enterprises.
(1) If economically efficient, two or more national committees may, exceptionally, be brought together to set up a joint communal enterprise, in particular if the communal enterprise is to serve the common needs of the population in the districts of the combined national committees or if the joint operation makes more effective use of natural resources, products, raw materials, real estate or labour. Such an undertaking is then operated under the joint management and supervision of the national committees. One of the associated national committees, as determined by the Agreement, shall be the Head of the National Committee (Office), acting on their behalf with the agreement of the associated national committees. This consent shall be given by the associated national committees by their representatives at a meeting of the Joint Commission or in writing. Disagreements between the associated national committees shall be decided by the Supervisory National Committee (Office), which may also take the necessary measures.
(2) The Head of the National Committee shall establish a joint communal undertaking on the basis of an agreement between all the associated national committees, which shall take place through their agreed resolutions.
Business.
(1) When establishing a municipal enterprise, the Head of the National Committee shall establish a branch of business. This basic focus of the municipal enterprise must be in line with the single economic plan. The defined business sector is the basis for the development of a municipal enterprise business plan, which then determines its activities.
(2) It is not necessary for a municipal undertaking to obtain an authorisation for its activities which would otherwise be required under trade law or other law. However, communal undertakings are subject to provisions on the approval of establishments as well as other regulations on the protection of the life and health of workers, on general safety and on the education of workers.
(3) The regulations governing transport business remain unaffected.
(1) If it is economically viable (with the full use of operating equipment, labour and administrative equipment), communal enterprises are set up as enterprises with a single business (simple ones).
(2) If the establishment of a simple communal enterprise is not economically viable, the national committee shall bring together the economic unit (s) in a single municipal enterprise, in particular the related enterprise (s). The combined municipal enterprise may also be set up from economic units (plants) with different fields of enterprise, in particular if it can complement each other with its products or services or if this organisational link effectively uses labour, administrative equipment, resources of raw materials, energy, products, semi-finished products or waste.
Name and external marking.
(1) The head of the national committee shall determine the name of the local undertaking when it is established. This name includes the designation "municipal enterprise '.
(2) The individual establishments of a communal enterprise intended for public contact must be marked on the outside in such a way as to identify the service they provide or which products they sell. It should be further apparent from the external label that they are the premises of a municipal undertaking. It is also necessary to distinguish clearly from one another.
The legal personality of the municipal enterprise and the property entrusted to it.
The full application of the economic autonomy of a municipal undertaking implies its legal autonomy. Therefore, municipal undertakings are separate legal entities and significant data on them are entered in the company register.
(1) The State is the owner of the assets of a municipal undertaking; the municipality is entrusted with the management of the assets. In matters relating to this property, the municipal undertaking is acting in its own name.
(2) Property serving the purposes of health, social or education, or by which the National Committee performs its administrative tasks, may be incorporated into a municipal undertaking only on condition that it continues to serve those purposes or that the relevant tasks are otherwise appropriately taken care of.
Embezzlement and encumbrance.
(1) The communal undertaking must not dispose of the assets intended for its permanent use or any part thereof; third parties may not acquire liens or other rights in kind for such property, either library or non-library. Exemptions may be authorised by the Regional National Committee, even if they are a regional communal enterprise.
(2) The Ministry of the Interior may, in agreement with the Ministry of Finance, provide details of which parts of the property are intended for the permanent use of municipal undertakings and where they cease to be such, under which circumstances exemptions under paragraph 1 may be authorised and in which cases the Regional National Committee may delegate its competence to authorise such exemptions in part to national committees of lower degrees.
Satisfaction of commitments.
(1) For the obligations of a municipal undertaking, satisfaction can only be obtained from assets entrusted to it in an administration which is not intended to be used permanently by the undertaking.
(2) The assets managed by a municipal undertaking cannot be claimed or met by the State.
(3) The State is not liable for the obligations of municipal undertakings.

Management of municipal enterprises and their organisation.
The principles of the socialist economy.
(1) Community undertakings are governed by the principles of the socialist economy. The most important of these are: planning, applied in all their activities, and active participation of workers. These are, in particular, linked internally to budget management and the principle of economy, one-person management, efficient decentralisation, operational management, stimulating the interest of the workers on the results of business, personal responsibility, control from above and below, and the principle of constant growth.
(2) In other provisions it is further developed as these principles are reflected in the organisation, management and activities of municipal enterprises.
Internal organisation of the business.
(1) The purpose of the organisation of a municipal undertaking is to organise its activities in such a way that it can best fulfil its business plan.
(2) The communal enterprise can be internally integrated into the organisational services for which tasks are specified in the activity of the whole enterprise (establishments, establishments and j.). The internal breakdown of the municipal undertaking shall be proportionate to its scope and type of activity and shall allow for the mutual cooperation of all components.
(3) If the operation of a municipal undertaking requires internal breakdown, the undertaking must be organised in such a way that the various departments or several units can manage separately according to the budget.
(4) The internal breakdown of the municipal undertaking shall be determined by the administrator, after the organisation order.
(5) The Ministry of the Interior will issue organisational rules for the internal organisation of municipal enterprises, taking into account the scope of their business and their field of activity. The organisation rules shall also specify the form of the organisation rules and the approval required.
Principles for driving.
(1) The authority and responsibility in a municipal undertaking should be entrusted to the lowest organisational bodies as far as possible. In the case of higher organisational bodies, only essential matters or those which can be effectively procured together for a larger number of subordinate services are concentrated.
(2) Each organisational unit of an undertaking shall be led by only one manager who, within the scope of his or her competence, decides separately.
(3) The management of an undertaking must be flexible in adapting to changing circumstances, combating bureaucratic forms of work and intervening in a timely and effective manner in order to remove the causes of operational disturbances without delay and to face them in due time.
(4) All business workers are personally responsible for carrying out their duties.
(5) The communal enterprise should be guided by an effort to continuously improve its management, organisation and activity in all respects and to build on ever-higher objectives.
Keeper.
(1) The head of the municipal enterprise shall be the administrator who shall conduct all his activities and act on his behalf. His appointment, legal status and representation are governed by Act No. 167 / 1950 Coll., on Municipal Enterprises (hereinafter referred to as "the Act ') in a manner appropriate to the significant place held by the Trustee.
(2) The administrator shall be responsible to the head of the national committee for the performance of his or her duties as well as for all duties imposed on the undertaking. The Head of the National Committee shall be subordinate to it by means of a referendum responsible for municipal business. This referendum also provides cooperation with other reports of the National Committee. In the communal enterprises for which the Directorate-General has been established, the trustees shall be subordinate to the Director and shall be subject to senior government management and supervision through him.
(3) If the administrator considers that the decision of the head of the national committee is prejudicial or prejudicial to the important interests of the municipal undertaking, he shall notify that national committee in writing without delay of his divergent opinion with due justification. Although the National Committee may, if it persists, give its decision, it must, however, notify the administrator of the diverging opinion to the Supervisory National Committee (Office). Similarly, it shall be done if the administrator considers that the important interests of the municipal undertaking are detrimental to or jeopardising the decision of the Director; The Director may, if he persists, make his decision, but must notify the Management Board of the divergence.
(4) The administrator shall be granted, where he has deserved it, a special remuneration from resources and in a manner determined by the Home Office's directives in agreement with the Ministry of Labour and Social Welfare and with the central body of the Single Trade Union Organisation for the successful completion of the plan - in particular for its desired overrun.
Business manager.
(1) The business operator shall be set up in enterprises in excess of or exceeding CZK 20,000.000 in the previous year under the current financial plan, as well as in those individual enterprises for which the Regional National Committee provides for this.
(2) The business manager shall be appointed by the head of the national committee from among the employees of the municipal enterprise after hearing the administrator, which may also call it off. Prior to the provision or removal of the farm manager, the Head of the National Committee shall request the opinion of the Regional Inspectorate.
(3) The main obligation of the farm operator is to draw up a draft farm budget in which the highest economy must be applied. They shall ensure that the business is managed according to the budget and that the tasks assigned are carried out as economically as possible.
(4) If it contradicts a certain budget decision, the manager of the farm will draw attention to this. If the administrator persists despite this notification to the original decision, it must be carried out, but the farm manager is obliged to report on this to the head of the national committee and the Regional Inspectorate, which shall inform the administrator. Any major non-compliance with the company's budget must also be reported to the head of the National Committee and the Regional Inspectorate.
(5) Other tasks of the farm manager shall be laid down in organisational rules.
Head of staff.
(1) Where this is required by the scope and type of business, the AIFM may appoint a senior staff member for certain administrative or operational tasks, in particular: the head of operations, the planner, the taskmaster, the beader and the safety officer. The organisational rules shall lay down the tasks of senior staff and how their functions may be combined in one person and which of them are directly subordinate to the administrator.
(2) For each organisational unit, the administrator shall appoint a competent manager with the necessary professional qualifications (head of establishment, establishment, etc.). The organisational rules shall determine their tasks.
(3) Important issues of a municipal undertaking shall be discussed at regular meetings of senior staff, organised by the administrator and attended by representatives of the race council. Similar meetings with their immediate subordinates are also convened by the head of the organisational bodies, if necessary.
Citizenship participation.
Community undertakings whose operations are increasingly affected by the interests of certain groups of the population (such as municipal housing companies) will be organised under the guidelines issued by the Ministry of the Interior in such a way that citizens concerned will be added to the ancillary, advisory and control participation, even beyond the general control of the people referred to in Sections 1 (2) and 3 (2).

Business plan.
General provision.
(1) The activity of a municipal undertaking is determined by its approved business plan. The business plans of municipal enterprises are part of a single economic plan by their content.
(2) The State Planning Authority's directives specify the parts of which the draft business plan is made up, prescribe its content and form and determine the procedure and time limits and the way in which it is prepared, implemented and controlled.
A draft plan.
(1) The draft plan is prepared by the undertaking in accordance with the indicative figures.
(2) All the organisational units participating in the draft plan shall participate actively in the preparation of the draft plan, with the participation of all workers employed in them (friendly planning). In doing so, the experience of the workers and their proposals to improve traffic will be evaluated.
Technical economic standards.
(1) Technical and economic standards are the basis for the design of the business plan, namely performance standards that serve to pay work according to merit, and standards that determine the desired value or level of use of the plant, the consumption of material and energy, the level of stocks and the level of direction and the quality of business performance.
(2) The method of establishing technical economic standards and the procedure for their approval and assurance shall be determined by the Central Inspectorate, as regards performance standards, after consultation with the Central Authority of the Single Trade Union Organisation.
Discussing a business plan.
The draft business plan shall be submitted by the administrator to the head of the national committee within a specified time limit. The business plan is then approved in accordance with the special rules on this issued (Section 11 (2) of the Act).
A business plan schedule.
The approved business plan shall be broken down into the organisational services and in the next step into individual workplaces and into the shortest possible periods of time for each worker to know what task to perform at a certain time.
Implementation of the plan.
(1) In order to ensure the supply, investment, material and energy needed by the undertakings to meet the plan and to ensure the disposal of the business performance, they are concluded in accordance with the specific rules on the framework and sub-contracts in force, following direct contracts with suppliers and customers.
(2) Compliance with the business plan is an essential task for the company. The company's efforts must be to carry out this task as economically as possible and for the continuous improvement of its performance and, if it is desirable, to exceed it. The business plan shall specify which business performance and the assumptions under which it is desirable to exceed the plan, which requires additional labour and production or financing, as well as in which cases the plan is undesirable.
(3) The application of the principle of economy leads to an increase in the profitability of municipal enterprises, which must, however, be assessed in terms of the whole national economy. The increase in profitability must not be achieved by increasing prices or deteriorating the quality of business performance. In the socialist economy, care for the provision of good and cheap services in the general interest is prevalent over profitability for some companies. But even then, it must be done economically. Here, the principle of economy is aimed at reducing the difference by which the budget costs exceed the budget revenues.
Control the implementation of the plan.
The implementation of the plan shall be continuously monitored and checked. Control of the implementation of the plan shall be carried out primarily by everyone at their workplace and by each manager within the limits of their tasks. The implementation of the plan is also monitored by the control of the people. The control is also one of the important tasks entrusted to the authorities of the State Administration and Supervision. The effective means of control is the cash control carried out by the banks.

Work and work.
Workers' participation.
(1) Workers are a decisive factor in the performance of services and in production. Their new relationship to work and its growing working methods are the driving force behind the development of the socialist economy. It is particularly socialist competition, aimed at fulfilling the tasks at the time of the most important, and its main form of strike movement, which significantly exceeds average performance by better handling of technology. Socialist competition is reinforced by the conclusion of socialist treaties. Practical experience and creative initiative of workers are applied in the improvement movement.
(2) The management of the enterprise organises the work of employees based on their conscious work effort, creative skills and initiative and taking them to the widest extent to participate. Such participation shall be demonstrated in particular by appropriate planning, monitoring the implementation of the plan and by the detection and criticism of deficiencies.
(3) Collective agreements concluded between the management of the company and the workers represented by the Revolutionary Trade Union Movement Group also contribute to the successful performance of the company's tasks.
Recruitment.
(1) The maximum number of employees required by the undertaking to carry out the tasks concerned is set out in the business plan (work plan). The company is obliged to uncover work reserves through a thorough inspection of the workplace.
(2) An employee of a municipal undertaking shall be recruited and assigned to posts by the administrator after consultation of the race council and released with the agreement of that authority. The AIFM may delegate that competence to senior subordinate organisational units.
(3) Any recruitment and dismissal of staff shall be dealt with in close cooperation with the cadre officer, if any.
The reward for the job.
(1) The employment and wage ratios of employees of municipal enterprises are governed by the provisions applicable to employees subject to the rules on public wage policy.
(2) The communal undertaking is obliged to establish a general wage system according to merit, which assesses work according to its quality, quantity and social importance. The evaluation of the quality of work shall take into account the necessary knowledge, skills, responsibilities, labour-intensive and difficult effects of the environment. The task wages and the remuneration of increased premium performance should be introduced wherever appropriate.
(3) An exceptional remuneration may be granted to workers who have performed such extraordinary tasks that their remuneration is not adequate for the performance of their duties. Such remuneration shall be decided upon by the lead national committee on the administrator's proposal, in so far as it does not concern remuneration from the resources of the workers' farm fund; The Head of the National Committee may only take action on remuneration in agreement with the Single Trade Union Organisation body designated by its Central Authority. Special provisions apply to remuneration to AIFMs (Paragraph 21 (4)).
(4) The author of the proposal shall receive a remuneration under the separate directives for the improvement of or economic performance of the undertaking.
(5) Gradually, the wage for work can only be increased for all workers if labour productivity has increased throughout our economy.
Protection of workers' life and health.
(1) The undertaking is obliged, by its own means, to build and maintain, technically speaking, care facilities for workers and to take all necessary measures to do so; ensuring, in particular, the conditions for safe and sound work and the implementation of effective and valuable healthcare. Specific rules shall determine the extent to which workers' health care facilities shall be built and the extent to which the costs associated with their operation shall be borne by public authorities and national insurance.
(2) The company is required to train and educate its employees regularly, in particular newly recruited or assigned to other workplaces, accident prevention, safe work methods, combating occupational diseases and health protection at all.
(3) It is also the task of the company, in cooperation with the race council, to take the best care of its employees on the social, health, cultural and physical aspects.
Childhood.
According to guidelines issued by the Ministry of the Interior in agreement with the Ministry of Labour and Social Welfare and with the approval of the Centre of the Working Age, the communal enterprises of the Centre of Labour shall be established. In these countries, all-round training is provided to successfully carry out work, in particular vocational and general training and political, cultural, health and physical education.
Kadra care.
(1) The administrator is obliged to ensure the correct positioning of the beakers in such a way that everyone working at his or her place of work makes the best possible use. Continuous training is intended to increase the expertise and political and economic awareness of workers, in particular, who are able to grow and who thus form a source for occupying higher and highest office in enterprises. The administrator shall designate staff members to undergo training in cooperation with the race council.
(2) Of those who have undergone competitive and corporate training, the administrator will design the most suitable for higher-type training in cooperation with the race council. This training is organised by the Ministry of the Interior with the help of inspectors. It is primarily broadcast by strippers and improvement workers who are given the opportunity to grow into a new socialist intelligence from the working class.
(3) Issues concerning the care of cadres are dealt with in the closest cooperation with the cadre officer, if any.

Traffic technique.
Operating equipment.
(1) The type and scope of operating facilities of a municipal undertaking is determined by the type and scope of the business performance, i.e. services or products. The undertaking is obliged to make full use of the capacity of the facilities it has for disposal. Devices fully unused shall be transferred where they can be used better.
(2) It keeps its installations in good condition, restores them and complements and improves them within the limits of economic efficiency.
Operating and technical methods.
(1) In the operation of communal enterprises, the results achieved by experience based on research and technological development should be used.
(2) Community business inspectors shall ensure that methods for improving operations and performance such as specialisation, standardisation, mechanisation and co-operation are applied to municipal enterprises - as appropriate - in their field of activity. Special care should be given in maintenance and repair enterprises to technical training staff for multiple activities, so that the required services can be provided with as little staff as possible.
(3) Auxiliary and ancillary activities to ensure the smooth running of their own operations, such as small repairs, should be limited so as not to exceed the level of economy. In many cases, it will be more advantageous to take advantage of the possibility of co-operation between municipal undertakings or to award such work to other undertakings.
Traffic control.

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Regulation Information

CitationGovernment Decree No. 35 / 1951 Coll., declaring the Statute of Municipal Enterprises
Regulation Type-
Author-
CollectionCode of Laws
Date of Promulgation30.04.1951
Effective from01.01.1951
Effective until-
Status Valid
The regulation text is for informational purposes only.
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