Act No. 427 / 1990 Coll.
Law on transfers of State ownership to other legal or natural persons
Valid
Effective from 01.12.1990
427
THE LAW
of 25 October 1990
concerning transfers of State ownership of certain items to other legal or natural persons
The Federal Assembly of the Czech and Slovak Federal Republic decided on this law:
BASIC PROVISIONS
The Act lays down the conditions under which State ownership of certain items for which State undertakings, budgetary and contribution organisations and national committees (hereinafter referred to as "organisations') had the right to operate on 1 November 1990 shall be transferred to the natural or legal persons hereinafter designated.
(1) The object of the transfer of ownership under this Act is movable and immovable property which, as the property of the operating parts of organisations operating in the field of services, trade and non-agricultural production, form or may form a set which is a coherent economic or property unit (hereinafter referred to as the "operating unit ').
(2) The object of the transfer of ownership may not be the operating units for which the exploitation rights of persons whose residence or registered office is in the territory of another State are held.
(3) Operating units may no longer be the subject of the transfer of ownership,
(a) to which the law on the mitigation of the consequences of certain property injustices applies, for as long as the entitlement of the persons entitled to extradition is maintained;
(b) which have transferred from the ownership of natural persons and companies whose members were solely natural persons to the State under the provisions issued after 25 February 1948, or for other reasons after that date, until such persons' property rights have been governed by specific provisions.
Owners of operating units, unless otherwise provided for in this Act, may become natural persons who are nationals of the Czech and Slovak Federal Republic or were Czechoslovak nationals after 25 February 1948, as well as legal persons whose participants or associates are exclusively such natural persons (hereinafter referred to as "the person ').
OVERVIEW OF OPERATING INSTRUMENTS
(1) Organisations shall carry out the sale of an operating unit at public auction.
(2) The public auction is organised by the competent authorities of the Czech Republic or the competent authorities of the Slovak Republic (hereinafter referred to as the competent authority of the Republic).
(3) The competent authorities of the Republic shall draw up and confirm the lists of operating units to be offered for sale. The lists shall include:
(a) precise identification of the operating unit by means of:
1. the name and location of the operating unit;
2. the name and registered office of the organisation which has the right to manage the assets;
3. an inventory of land, buildings, machinery and equipment and other basic means;
(b) the trigger price, specifying the items on which it is composed;
(c) the place, date and time of the public auction;
(d) the place and manner in which the auction security is lodged;
(e) the conditions under which interested parties will be allowed to inspect the operating unit;
(f) the amount of credit granted to the organisation for the acquisition of stocks for the operation unit concerned and the conditions for granting the new credit.
(4) If they are not auctioned as part of an operating unit, the construction or land where the operating unit is located shall also indicate their exact designation, the person who owns them or the organisation that has the right to manage them.
(5) The list shall include an inventory of inventories made on the date of drawing up the list and their price.
(6) The lists of operating units shall be published for at least 30 days before the public auction date; the manner of publication shall be laid down by the laws of the national councils.
(1) Those wishing to participate in the public auction of an operating unit as a candidate (hereinafter referred to as "the auction participant ') must demonstrate the lodging of an auction guarantee of at least 10% of the call price, but not less than 10 000 CZK.
(2) The auction security shall be settled by the auctioneer at the purchase price at which the operating unit was auctioned after deduction of the public auction authorisation fee. Upon completion of the auction, the auction security lodged shall be returned to the other tenderers after deduction of the licence fee.
(3) The fee for the authorisation to participate in the auction is 1000 CZK.
(4) If the auctioneer does not, within a specified period, lodge the price at which the operating unit was auctioned, the auction security shall be deemed to have been issued to the competent authority of the Republic.
(5) Other persons may also be present at the public auction if they pay the admission fee.
(1) The public auction is carried out by a licitator appointed by the competent authority of the Republic.
(2) The proper conduct of the public auction shall be supervised by a representative of the competent authority of the Republic.
(3) In the course of the public auction, the licitator must not favour or restrict any of the participants; the auctioneer himself or through a representative cannot apply for the property which is the subject of the auction. This also applies to persons close to the licitator. 1)
In addition, persons who carry out the tasks of the competent authority of the Republic in carrying out the auction may not be appealed for the property being auctioned through a representative. This also applies to those close to them.
The opening price consists of the price of land and buildings, determined according to the applicable price regulations, (2) the price of machinery, equipment and other basic assets and the price of the items of gradual consumption.
(1) The auctioneer starts the public auction by announcing the operation unit subject to the public auction, the call price (§ 8) and the price of stocks without the items of gradual consumption at the auction date. The operating unit shall be auctioned until the auction participants make a higher bid price. If a higher price has not been offered in spite of a double invitation, the auctioneer shall notify the last bid once again and identify the operating unit by a letter of credit to the person who made the last bid (hereinafter referred to as the auctioneer).
(2) The public auction shall be subject to a protocol signed by the representative of the organisation, the representative of the competent authority of the Republic, the licitator and the auctioneer.
(3) The purchase price consists of the price of the goods auctioned and the price of stocks without the items of gradual consumption. The stocks and their price on the day on which the establishment is taken over shall not differ significantly from the stock and price on the auction date.
(1) If the operating unit with which the property is not auctioned cannot be auctioned in the manner set out in Paragraph 9, and if there are at least five persons involved in the public auction, the auctioneer gradually reduces the trigger price by 10% but not more than 50%.
(2) If the operating unit and the real estate are auctioned and the unit fail to be auctioned in the manner set out in Section 9, the auctioneer shall terminate the auction; the auctioneer shall terminate the auction in the same way if the operation unit fails to be auctioned as specified in paragraph 1.
(1) The ownership of items auctioned by the licitator shall be transferred to the auctioneer who shall pay, within 30 days of the auction date, the price obtained by auctioning to the special account of the competent authority of the Republic after deduction of the balance of the auction security (§ 5 (2) and (3)).
(2) If the auctioneer does not pay the price at which he has auctioned the case within the prescribed time limit, the transfer of ownership to the auctioned item shall be cancelled from the outset and the auction security shall be accepted by the competent authority of the Republic. That authority may also impose an obligation on such an auctioneer to reimburse the costs of a futile auction or to pay a special fee of up to 30% of the price initially auctioned. The costs of the futile auction and the proceeds of the special fee shall be paid to the special account of the competent authority of the Republic. An auctioneer who does not pay the price at which the operation unit was auctioned within the specified period may not participate in the re-auction of that operation unit.
(3) If the price is not paid within the prescribed time limit referred to in paragraph 1, the operating unit shall be reincluded in the first round of the auction.
(4) The auction price shall be paid by the auctioneer to the organisation within 30 days of the auction date.
(1) The award of the appendage shall be made to the auctioneer of the use as well as the risk of accidental destruction or deterioration of the operating unit.
(2) The current owner is not responsible for the defects of the operating unit sold in public auction.
(3) If the auctioneer fulfils the condition laid down in Paragraph 11 (1), the competent authority of the Republic shall provide him with confirmation that the operation unit has been sold to him by public auction and that he has become its owner on the date of the award of the document. Where the operating unit is a real estate, the competent authority of the Republic shall send one copy of that certificate to the competent authority of geodesy and cartography for registration in the real estate register.
(1) The competent authorities of the Republic shall draw up lists of matters which have not been auctioned pursuant to paragraphs 4 to 12 and shall decide which of them shall be auctioned again. Even if the auction is repeated, it shall be carried out in accordance with Sections 4 to 12.
(2) If the same operating unit is repeatedly auctioned, not only the persons listed in § 3, but also other natural persons and legal persons whose participants or members are exclusively natural persons may become owners of the same operating unit.
(3) In the re-auction of the operating unit referred to in Paragraph 10 (1), the auctioneer may gradually reduce the trigger price by a maximum of 80%. In the case of a repeated auction of an operating unit referred to in Paragraph 10 (2), the auctioneer may gradually reduce the invoicing price by a maximum of 50%.
Where an operating unit which is located on a land for which the management of the organisation of which the operating unit is part is the subject of a sale, that operating unit shall be sold with that land.
(1) The auctioneer has the right to conclude a contract for the lease of non-residential space, 3) in which the operating unit is located. The right of use shall be exercised by the auctioneer against the owner or against him who has the right to manage the property or, where appropriate, against his legal successor for a period of five years, unless otherwise agreed.
(2) If the auctioneer does not agree on the amount of the rent with the owner or the owner of the real estate right, the competent authority of the state administration of the Republic shall decide on that requirement on the basis of generally binding legislation.
(1) Where an operating unit used on 1 October 1990 under a contract of delegation of an establishment for temporary use, (4) where applicable, that contract shall be replaced by that contract, (5) its sale shall take place without public auction if, at the latest, five days before the date of the auction, the person who entered into that contract with the organisation (hereinafter referred to as "the user '), if the use relationship persists.
(2) The purchase contract for the sale of this operating unit shall be concluded by the organisation with the user; the mutual claims arising from or in connection with the use of the establishment shall be settled at the same time.
(3) The purchase price is determined in accordance with Section 8.
(4) If, within 60 days of the date of publication of the auction, the contract of sale does not lead to the conclusion of the contract, the right of the user shall cease to exist under the contract referred to in paragraph 1 and the operating unit may be auctioned. Other user and organisation mutual claims remain unaffected.
(5) This sale gives the buyer the same rights under Paragraph 15 as the auctioneer.
OTHER OBLIGATIONS OF THE OPERATING INSTRUMENT INSTALLER
(1) The auctioned operating unit may only be transferred to the persons referred to in Paragraph 3 within two years of the date of the auction; if the operating unit has been sold in a repeated auction, ownership may also be transferred to the persons referred to in Paragraph 13 (2).
(2) If the organisation used an operating unit in whole or in part for the sale of basic foodstuffs before auctioning, the auctioneer shall continue to sell on the seventh working day following the auction, for at least one year, unless the municipality shortens that period at its request.
(3) The provisions of paragraphs 1 and 2 also apply to the person who acquired the operating unit under a purchase contract under Paragraph 16.
(1) If a person fails to comply with the obligations referred to in Article 17 (2), the competent authority of the Republic may impose a financial fine of 2000 Cds for each working day of the failure to comply with the obligation.
(2) The fine may be imposed within one year of the infringement.
DISCLOSURE OF STATE UNDERTAKINGS
The founder of a state enterprise whose operating units have been sold under this Act shall assess the justification for the continued existence of a state enterprise. (7) the final proceeds of the liquidation shall be made into a special account. If the proceeds of liquidation are not sufficient to satisfy all remaining claims, they shall be satisfied by the State through the competent authority of the Republic.
FINAL PROVISIONS
(1) The net proceeds from the sale of operating units under this Act shall be paid into a special account of the competent authority of the Republic.
(2) The funds from this special account may not be used for two years for any purpose other than to satisfy claims and claims arising from the implementation of this Act.
(1) At the request of the competent authorities of the Republics, staff of organisations and operational units shall be obliged to provide them with the information, documents and documents required within 30 days of their request and to allow them to enter the operational units.
(2) If an organisation infringes the obligations laid down by this law, the competent authority of the Republic shall impose a fine on the organisation. The method of payment and the amount of fines shall be laid down by the Czech National Council and the Slovak National Council.
The labour relations of workers of organisations are not affected by this law.
(1) The transfer of ownership of property under this Act is not covered by Act No. 174 / 1950 Coll., on auctions outside execution, the statutory measure of the Bureau of the Federal Assembly No. 364 / 1990 Coll., on the management of property entrusted to the State Company, and Decree No. 119 / 1988 Coll., on the management of national property.
(2) The price of the auctioned goods is not limited by the provisions of the prices.2)
This law is without prejudice to the effectiveness of the legal measure No. 364 / 1990 Coll., on the treatment of property entrusted to the state enterprise.
The Ministry of National Property Management and its privatization of the Czech Republic and the Ministry of National Property Management and privatization of the Slovak Republic will issue a general binding legislation to adjust the details of the public auction, including the amount of the admission fee.
(1) State-owned enterprises, budgetary and contribution organisations, cooperatives and municipalities cannot, from the date of application of this Act until 31 December 1993, disclose (1) the contracts for the lease of non-residential premises, (2) the non-residential premises in which the operating units (§ 2 (1)) are located, to be used by the organisations referred to in § 1 of this Act.
(2) Where State undertakings, budgetary or contribution organisations, cooperatives or municipalities have been declared (3) before the date of application of this law of the lease agreement on non-residential premises, (2) by which they have left the non-residential premises in which the operating units are located (§ 2 (1)) to the organisations referred to in § 1 of this Act and if the notice period (1) has not expired by the date of application of this law, those periods will expire on 31 December 1993.
This Law shall enter into force on 1 December 1990.
Havel v. r.
Dubček v. r.
CHF
1) § 116 of the Civil Code.
1) Article 10 of Act No. 116 / 1990 Coll., on the rental and sublease of non-residential premises.
2) Decree of the Ministry of Finance, Prices and Wages of the Czech Socialist Republic No. 182 / 1988 Coll., on the prices of buildings, land, permanent crops, remuneration for the establishment of the right of personal land use and compensation for temporary land use, as amended. Decree of the Ministry of Finance, Prices and Wages of the Slovak Socialist Republic No. 205 / 1988 Coll., on the prices of buildings, land, permanent crops, remuneration for the establishment of the right of personal land use and compensation for temporary land use, as amended.
2) § 3 of Act No. 116 / 1990 Coll.
3) Article 3 of Act No. 116 / 1990 Coll., on the rental and sublease of non-residential premises.
3) § 12 of Act No. 116 / 1990 Coll.
4) Part II of the Government of the Czech Republic Decree No. 1 / 1988 Coll., on the sale of goods and the provision of other services to citizens by permission of the National Committee. Part II of the Government of the SSR Decree No. 2 / 1988 Coll., on the sale of goods and the provision of other services by citizens on the basis of the permission of the National Committee.
5) Article 15 (1) of Act No. 116 / 1990 Coll.
6) Section 26 of Act No. 111 / 1990 Coll., on State Enterprise.
7) § 27a et seq. of Economic Code No. 109 / 1964 Coll., as amended. Section 251 of the Labour Code.
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Regulation Information
| Citation | Act No. 427 / 1990 Coll., on transfers of State ownership to other legal or natural persons |
|---|---|
| Regulation Type | - |
| Author | - |
| Collection | Code of Laws |
| Date of Promulgation | 25.10.1990 |
|---|---|
| Effective from | 01.12.1990 |
| Effective until | - |
| Status | Valid |
The regulation text is for informational purposes only.
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