Act No 353 / 2019 Coll.
Law on the selection of persons to management and supervisory bodies of legal persons with State ownership (nomination law)
Valid
Law
Effective from 04.01.2020
353
THE LAW
of 3 December 2019
on the selection of persons to the management and supervisory bodies of legal persons with State ownership (nomination law)
Parliament has decided on this law of the Czech Republic:
BASIC PROVISIONS
Subject matter
(1) This Act provides for:
(a) the method of establishment, scope, competence and certain other issues relating to the Committee on Personnel Nominations (hereinafter referred to as the Committee),
(b) the procedure for the selection of persons to be proposed or appointed by the State to the management and supervisory bodies of legal persons having the State's holding (hereinafter referred to as the nomination procedure).
(2) This law shall not apply to the nomination procedure where a bridging institution or asset management entity is established with a State holding in accordance with the law governing recovery and resolution of the financial market.
Definition of terms
For the purposes of this Act, a legal person with the State's shareholding shall be deemed to be:
(a) the trading company in which the State has a holding;
(b) a state enterprise, not a state enterprise whose legal circumstances are still governed by Act No. 111 / 1990 Coll., on a state enterprise, as amended;
(c) a national undertaking; and
(d) State Organisation of the Railway Infrastructure Administration.
COMMITTEE
(1) The Government hereby establishes a Committee, which is the advisory body of the Government.
(2) The Committee assesses the nominations of persons to be proposed or appointed by the State in the management and supervisory bodies of legal persons with a State participation (hereinafter referred to as the "nomination proposal") submitted by the Ministry under the jurisdiction of a legal person with a State participation (hereinafter referred to as the "Ministry").
(3) The Committee's activities are carried out by the Office of the Government of the Czech Republic (hereinafter referred to as the "Office of the Government").
The Committee shall have at least five members.
(1) The members of the Committee are appointed and withdrawn by the Government.
(2) The term of office of a member of the Committee shall be five years. Repeated appointment is possible.
(3) The members of the Committee shall elect a chairman and a Vice-President of the Committee from among their number.
(1) Only a natural person may be a member of the Committee who, at the date of his appointment:
(a) has reached the age of 30;
(b) she is fully competent;
(c) it is fair and fair,
(d) is free of charge;
(e) for at least 5 years, carry out activities consisting of the management of legal persons, law, HR, audit, economics or financial or economic matters; and
(f) is not a member of a political party or political movement.
(2) A member of the Committee shall inform the Prime Minister without delay of any changes to the conditions referred to in paragraph 1 (b), (c), (d) or (f).
(1) The term of office of a member of the Committee shall cease to be:
(a) the expiry of the term of office;
(b) appeal on the grounds referred to in paragraph 2;
(c) giving up the function;
(d) if a member of the Committee no longer fulfils the condition of full competence, integrity or integrity; or
(e) become a member of a political party or political movement.
(2) The Government of a Member of the Committee may revoke a member of the Committee if he has not performed the function of member of the Committee for health or other reasons for 6 consecutive months.
(3) The function of a member of the Committee in the cases referred to in paragraph 1 (a), (b), (d) and (e) shall cease on the date on which any of the relevant facts occurred.
(4) If a member of the Committee renounces his or her duties, his / her membership of the Committee shall cease 30 days after receipt of the written notice of resignation to the Prime Minister, unless later specified in the notice.
Membership of the Committee is a public function which does not constitute an employment or service relationship with the Czech Republic. For the performance of this public office, the remuneration set by the Government by way of order and the travel compensation to be granted in the amount and under the conditions laid down in the Labour Code shall be that.
(1) The list of members of the Committee, their names and, where appropriate, their names, surnames, year of birth and professional CV shall be published on their website by the Government Office.
(2) The arrangements for the election of the President and Vice-President of the Committee, the conduct of the Committee's deliberations and decisions and other details are laid down in the Committee's Statute and its Rules of Procedure.
(3) The Statute of the Committee and the Rules of Procedure of the Committee are approved by the Government.
NOMINATION PROCEDURE
Selection procedure
(1) A selection procedure shall be held prior to the submission of a proposal for nominations of a particular person for a post in the management body of a legal person with the State's holding.
(2) The notice of invitation to tender and the conditions to be fulfilled by a natural person seeking office in a management body of a legal person having the State's holding (hereinafter referred to as the conditions for the performance of office) shall be published by the Ministry on its website.
(3) The invitation to tender must be published for at least 10 working days.
(4) The obligation to hold a tender does not apply to urgent cases, provided that the Ministry did not cause this situation and could not have foreseen it by acting. The Ministry shall publish the justification for this procedure on its website without delay. In such a case, the Ministry may only propose to the governing body of a legal person with a State-owned participation a natural person who fulfils the conditions for the performance of the duties referred to in Article 11 (2).
(1) The Ministry shall lay down the conditions for the performance of the duties, taking into account the importance, character, objectives and size of the legal person with the State's participation. The conditions for the exercise of functions shall include, in particular, professional qualifications, the relevant degree of education, if required, the ability to familiarise themselves with classified information in accordance with the law governing the protection of classified information, if required, knowledge of foreign languages, credibility, managerial qualifications, knowledge and appropriate practice in the field of management of legal persons, law, HR, audit, economics, accounting, financial or economic fields, or practice in the field of business or activity of a legal person with the participation of the State.
(2) Only a natural person (hereinafter referred to as "the tenderer ') may participate in the selection procedure, who, at the date of filing of the application for the selection procedure:
(a) reach the age of 25 years;
(b) she is fully competent;
(c) it is fair and fair,
(d) is free of charge;
(e) it fulfils the conditions laid down for the performance of its duties by other legislation; and
(f) fulfil the conditions laid down for the performance of the duties referred to in paragraph 1.
(1) In order to assess applications submitted in the framework of a selection procedure, the Ministry will set up a selection committee. The selection committee shall have at least three members appointed by the Minister.
(2) In the event that the tenderer does not fulfil the conditions for the performance of the duties set out in the tender notice and laid down by this law or other legislation, the selection panel shall exclude the applicant's application. The other applications shall be examined by the selection panel, selected by the most appropriate candidate and shall determine the order of the other candidates.
(3) A written record of the selection procedure and its conduct shall be taken.
Nomination
(1) The Ministry, following a selection procedure or in the case of nominations of a particular person to the supervisory body of a legal person having the ownership of a State where the selection procedure is not compulsory, shall submit to the Committee a proposal to nominate a particular person in a legal person with the ownership of the State. The Ministry may submit to the Committee a higher number of nominations for the same position in a legal person with a State participation.
(2) The Ministry shall publish on its website information on the candidate it proposes to nominate.
(3) The information referred to in paragraph 2 shall be made public to the extent of the name or, where appropriate, the name, surname, year of birth, capacity to which the tenderer is nominated.
(4) The proposal to nominate a particular person to the governing or supervisory body of a legal person with the State's participation shall include:
(a) a professional CV;
(b) copies of all the supporting documents submitted by the tenderer in the selection procedure, if any; and
(c) a record of the selection procedure and its conduct, if the selection procedure has been carried out.
(5) The Committee may request further supporting documents or information in order to assess the proposal for nominations of a particular person to the governing or supervisory body of a legal person with a State participation. At the same time, it shall specify the time by which such additional supporting documents or information are to be submitted. During that period, the deadline for discussing the nominations of a particular person to the governing or supervisory body of a legal person with the State's holding in accordance with Paragraph 15 (1) shall not apply.
(1) The Committee shall assess whether the nominee:
(a) meets the conditions laid down in Article 11 (2) (a) to (d);
(b) be capable of familiarising himself with classified information in accordance with the law governing the protection of classified information, where required for the performance of his duties;
(c) has been a candidate for a selection procedure for the performance of his or her duties in the managing body of a legal person with the State's holding and his or her application has not been excluded under Paragraph 12 (2); this is not the case if, on grounds of urgency, a selection procedure has not been carried out under Article 10 (4); and
(d) the Ministry fulfils the conditions laid down for the performance of its duties in the form of an appropriate degree of education and appropriate practice in the required field, as provided for in Section 11 (1), when a selection procedure has been carried out.
(2) The nominee may no longer, on the date of his appointment, and for the duration of his or her duties.
(a) to undertake or pursue another gainful activity in the object of the activity of a legal person having the holding of the State in whose capacity he is nominated, whether or not for the benefit of other persons, or to brokerage business for another;
(b) be a member of a statutory or supervisory body of a legal person having the same or similar object of business with a legal person having the ownership of the State to which he is nominated;
(c) to participate in or engage in other gainful activities for the benefit of a commercial corporation having the same or similar object of business with a legal person having the participation of the State to which it is nominated.
(3) The statutes may provide for the prohibition of competition provided for in paragraph 2 (b). (b) by way of derogation, if it is a member of a statutory or supervisory body of a commercial corporation in which the Czech Republic has direct or indirect holdings.
Consultation of nomination
(1) The Committee will discuss the nomination proposal of a particular person within 10 working days of the date of submission of the proposal and reject or deliver an opinion on the proposal.
(2) The Committee rejects the proposal to nominate a person who does not meet the requirements of Paragraph 14 (1).
(3) If the nomination proposal has not been rejected, the Committee shall deliver an opinion on the nomination in which it recommends or does not recommend the nomination.
(4) The Committee shall take into account the conditions for the performance of the duties referred to in Article 11 (1) or laid down by other legislation, the requirements contained in the founding legal act of a legal person with the State's participation and the professional and personal conditions for the performance of the duties. To this end, he shall interview the applicant. The Committee may invite an independent third party to consider a nominations proposal for a particular person in order to assess the professional assumptions.
(5) A written record shall be taken of the conduct and conduct of the interview; the written record shall contain at least:
(a) the date and place of the interview;
(b) identification of the nominated person;
(c) the identification of the legal person with the State participation and the designation of the body to which the person is nominated;
(d) the course of the interview; and
(e) the Committee's reasoned opinion on the nomination proposal.
(6) The record referred to in paragraph 5 shall be sent by the Committee to the Ministry without delay and no later than 5 working days after the date of the Committee's deliberations. The Committee shall publish the alert referred to in paragraph 5 and the professional CV of the candidate on the Government Office's website immediately after the nominee has been appointed or proposed for office.
The opinion of the Committee shall not be binding on the Ministry. The appointment or nomination of the nominee shall be justified by the Ministry taking into account the opinion of the Committee. If the Ministry appoints or proposes the nominee to office in spite of the Committee's non-recommendation, the justification shall include an explanation as to why the Ministry has reached a different conclusion. It shall send the appointment or nomination information to the Ministry without undue delay and publish it on its website.
COMMON, TRANSITIONAL AND FINAL PROVISIONS
(1) For the purposes of this law, a natural person who has been convicted of an intentional offence shall not be deemed to be righteous for an economic or criminal offence against property if he is not looked at as if he were not convicted.
(2) The integrity shall be demonstrated by an extract from the record of the Register of Penalties requested by the Office of the Government or by the Ministry under another legislation. An application for an extract from the Register of Penalties and an extract from the Register of Penalties shall be sent in electronic form in a way that allows remote access.
(3) The integrity of foreign nationals is also demonstrated by a similar foreign document issued by the State of which the natural person is a citizen or resident, or by a similar foreign document issued by an authority of the State in which he has remained continuously for more than 3 months in the last 5 years before the date of the application for appointment of a member of the Committee or the date of the application for a tender. If that State does not issue a similar foreign document, the natural person shall submit a declaration of integrity made before the notary or authority of the State of which he is a citizen or the notary or authority of the State of last residence.
(4) The documents of integrity referred to in paragraphs 2 and 3 shall not be more than 3 months before the date on which the application for appointment was submitted by a member of the Committee or before the date on which the applicant's application was submitted for the selection procedure. If there are documents of integrity in a language other than the Czech language, they shall be presented in the original and simultaneously translated into the Czech language; in doubt, the Office of the Government has the right to request an officially certified translation.
(1) For the purposes of this Act, a natural person who does not have a arrears registered shall be deemed to be free of charge, except in the case of a arrears for which it is permitted to delay his payment or to distribute his payment on instalments,
(a) the authorities of the Financial Administration of the Czech Republic and the authorities of the Customs Administration of the Czech Republic,
(b) insurance premiums and periodic penalty payments for public health insurance;
(c) insurance premiums and social security periodic penalty payments and contributions to national employment policy;
(d) in cash transactions similar to those referred to in points (a) to (c) in the State in which the natural person is resident or in a State in which he has stayed for more than 3 months in the last 5 years before the date of the application for appointment as a member of the Committee or before the date of the application for a tender.
(2) In the case of the facts referred to in points (a) to (c) of paragraph 1, proof shall be furnished by the confirmation of the competent tax office, the competent customs office, the relevant health insurance undertaking and the relevant local social security administration, which may not be more than 3 months before the date of the application for appointment as a member of the Committee or the date of submission of the application for a tender.
(3) In the case of the facts referred to in paragraph 1 (d), it is demonstrated by a certificate of impartiality and, where appropriate, by a similar foreign document issued by the authority of the State of which the natural person is a citizen or resident, as well as by a similar foreign document issued by the authority of the State in which he has remained continuously for more than 3 months in the last 5 years before the date of application for appointment of a member of the Committee. Where that State does not issue a similar foreign document, the natural person shall submit a declaration of integrity made before the notary or authority of the State of which he is a citizen, or before the notary or authority of the State of last residence. Such documents may not be more than 3 months before the date on which the application for appointment was submitted by a member of the Committee or before the date on which the applicant's application was submitted for the selection procedure. If there are documents of impartiality in a language other than the Czech language, they are presented in the original and at the same time in translation into the Czech language; in doubt, the Office of the Government has the right to request an officially certified translation.
Compliance with the assumptions set out in Sections 6 (e) and 11 (2) (e) and (f) shall be demonstrated by the relevant documents. Compliance with the conditions set out in Article 6 (b) and (f) and in Article 11 (2) (b) or, in the absence of a relevant instrument, shall be established by a declaration of honour.
Where the Ministry appoints or proposes to serve a person whose nomination has not been submitted to the Committee or whose nomination has been rejected by the Committee, it shall be regarded as not being appointed or elected. The rights of third parties acquired in good faith are without prejudice to this.
The administrative rules shall not apply to the procedure under this Act.
Transitional provision
The Government shall appoint the first members of the Committee within 60 days of the entry into force of this Act. At the same time as the appointment of the first members, the Government shall designate one member whose term of office is 1 year, one member whose term of office is 2 years, one member whose term of office is 3 years and one member whose term of office is 4 years. The term of office of the other members shall be five years.
Efficacy
This Act shall take effect on the 15th day following its publication.
Vondracek v. r.
Zeman v. r.
Babiš v. r.
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Regulation Information
| Citation | Act No 353 / 2019 Coll., on the selection of persons to management and supervisory bodies of legal persons with State participation (nomination law) |
|---|---|
| Regulation Type | Law |
| Author | - |
| Collection | Code of Laws |
| Date of Promulgation | 20.12.2019 |
|---|---|
| Effective from | 04.01.2020 |
| Effective until | - |
| Status | Valid |
The regulation text is for informational purposes only.
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