Act No. 51 / 1948 Coll.
Act on the adaptation of certain financial ratios of national industrial and food enterprises
Valid
Effective from 30.04.1948
51.
Law
of 11 March 1948
on the adjustment of certain financial ratios of national industrial and food undertakings.
The Constitutional National Assembly of the Czechoslovak Republic decided on this law:
General provisions.
(1) National enterprises under this Act are national enterprises established under the Decree of the President of the Republic of 24 October 1945, No. 100 Coll., on the nationalisation of mines and certain industrial enterprises, and under the Decree of the President of the Republic of 24 October 1945, No. 101 Coll., on the nationalisation of certain food industry enterprises.
(2) The Minister of Industry, with regard to national enterprises established under Decree No. 100 / 1945 Coll., and the Minister of Nutrition, with regard to national enterprises established under Decree No. 101 / 1945 Coll.
(3) In matters of national undertakings having their registered office in Slovakia, the Minister for Finance, as well as the ministers in question, shall decide upon the statement of the authorising officer responsible.
(4) Where a central authority is referred to in other provisions, it shall be heard by that authority, if it is a national undertaking having its registered office in Slovakia, before its decision or before the proposal is made.
National equity.
(1) The core capital of a national undertaking is equal to the sum of the balance sheet values of its investments and the permanently necessary stocks. Exemptions from this principle permit and the adequacy of the size of the permanently needed stocks to be determined by the relevant Minister in agreement with the Minister of Finance for each industry, in the case of national undertakings, taking account of economic justification.
(2) The Minister of Finance, in agreement with the Minister of Finance, approves, on a proposal from the central authority of the nationalised industry (§ 19 of Decree No. 100 / 1945 Coll. and § 16 of Decree No. 101 / 1945 Coll.), the amount of the ordinary assets of each national undertaking, taking into account the provisions of paragraph 1 and the budget of the national undertaking, taking into account its financial statements for the current financial year. The Directive for the preparation of proposals for the determination of the amount of Common Equity shall be issued by the Minister responsible in substance.
(3) The joint-stock adjustment provided for in paragraphs 1 and 2 shall be carried out in accordance with the provisions of Sections 3 and 4.
(1) If, in agreement with the Minister of Finance after the hearing of the central authorities, the relevant Minister so provides, the national undertakings shall transfer the following parts of the assets in their balance sheet to the National Economic Fund established pursuant to Article 9 of Decree No. 100 / 1945 Coll. (hereinafter referred to as the Fund) and the Fund shall take over the following liabilities from the national undertakings in balance sheets:
(a) claims which have become dubious or immaterial as a result of war events or the organisation of state-law regimes;
(b) securities the value of which has become questionable as a result of war events or the organisation of state-law regimes;
(c) equity holdings in undertakings that have been nationalised;
(d) mutual financial claims and financial liabilities of national undertakings;
(e) commitments which have become an intolerable deterioration of claims and securities [points (a) and (b)] or a transfer of the values referred to in points (a) to (d) or for exceptional war situations;
(f) commitments that have become intolerable to the extraordinary conditions of the post-war if the government agrees.
(2) Parts of the assets and liabilities referred to in paragraph 1 shall be transferred to the Fund, if taken over by it, with effect from a date to be determined by the Minister of Finance responsible in agreement with the Minister of Finance.
(3) The Minister for Finance may, in agreement with the Minister for Finance, amend the terms of repayment and interest of the liabilities transferred to the Fund [paragraphs 1 (e) and (f)]. The transfer of liabilities to the Fund [paragraph 1 (e) and (f)] shall not require the authorisation of a creditor otherwise required under the relevant rules.
(4) In agreement with the Minister of Finance, after hearing the central authorities at the point of transfer referred to in paragraph 1, the Minister of Finance may authorise individual national undertakings to settle claims and securities referred to in paragraph 1 (a) and (b) on commitments referred to in paragraph 1 (e) and (f), subject to the condition for such netting.
(5) Transfers, legal acts and instruments referred to in paragraph 1 and the settlement referred to in paragraph 4 shall not be subject to taxes or charges. Libraries and official acts required to carry out such transfers shall be exempt from fees and charges for official acts in administrative matters.
(1) The amount by which the joint venture will be reduced under Paragraph 2 (2) of the Common Equity Fund will be paid by the Fund's national enterprise.
(2) The amount by which the Common Equity Tier 2 capital will be increased will be transferred to the national undertaking from the Fund's resources.
(3) The government's approval of the addition of common equity to cover balance sheet losses is subject to approval.
(1) The financial service carried out by the Fund under this Act is separate from the Replacement Service of the Fund (§ 9, § 2 of Decree No. 100 / 1945 Coll. and § 7 of Decree No. 101 / 1945 Coll.).
(2) The revenue of the financial service of the Fund consists in particular of:
1. contributions from net profit of national enterprises;
2. compensation for the nationalised property to persons who, under § 7 of Decree No. 100 / 1945 Coll. and § 7 of Decree No. 101 / 1945 Coll. do not receive compensation; transfer the replacement service of the Fund to its financial service,
3. the amounts paid to the Fund for the reduction of Common Equity (Section 4 (1));
4. the liquidation surpluses of the repealed national undertakings;
5th budget allocation.
(3) The financial services of the Fund will be used:
1. to the repayment and interest of liabilities transferred to the Fund under Article 3 (1) (e) and (f);
2. the amortisation and interest of loans negotiated by the Fund pursuant to paragraph 4;
3. increase in equity (§ 4 (2)).
(4) If the Fund's own revenue is insufficient to carry out the tasks referred to in paragraph 3, the Fund shall provide itself with the necessary resources in a manner and under the conditions laid down by the Minister of Finance in agreement with the Minister in question.
(5) The provisions of Decree No. 100 / 1945 Coll. and No. 101 / 1945 Coll., Decree of the President of the Republic of 24 October 1945, No. 102 Coll., on the nationalisation of equity banks, and Decree of the President of the Republic of 24 October 1945, No. 103 Coll., on the nationalisation of private insurance companies, on the replacement service of the Fund remain unaffected.
(6) The surplus of the Fund goes to the Treasury.
Financing of national enterprises.
(1) National undertakings are obliged to use exclusively the services of the investment credit facility to finance investments.
(2) A national undertaking may not use funds intended for investment or temporary purposes for other purposes.
(3) The Minister of Finance will, in agreement with the relevant ministers, issue guidelines for the financing of investments.
(1) The national undertaking shall raise funds for operational purposes, if it does not have them, by operating credit.
(2) A national undertaking may be in commercial contact with only one operating loan bank specialising in the relevant industrial sector, unless the Minister of Finance grants an exemption.
(3) A national undertaking may only receive an operating credit up to the amount laid down in its approved budget. In agreement with the Minister for Finance, the Minister for Finance shall issue a Directive on the scope of any derogations. Loans to fulfil the tasks of the national plan provided for otherwise under the same conditions are to be authorised as a priority.
(4) The Minister of Finance shall, in agreement with the relevant ministers, issue directives for authorising and securing operating credits.
(5) A national undertaking must not use funds intended to operate to finance investments. A credit balance on an account with a bank for an operating loan (paragraph 2) may only be used for investment measures under directives issued by a place designated to provide an investment loan.
(1) National undertakings may not grant each other financial credits or compensate for their compensation obligations. The provision of supply and performance credits is permissible between national enterprises and in contact with other domestic customers, but only within the business practices of individual economic sectors.
(2) In the cases at issue, the competent central authority shall decide in agreement with the bank (Section 7 (2)) if the contractual payment periods correspond to commercial practices and allow exemptions from the provisions of paragraph 1. If there is no agreement between that authority and the bank (§ 7 (2)) or if there is a payment deadline for deliveries by the State, state undertakings and institutions, the Minister of Finance shall decide in agreement with the Minister in question.
Payment by national undertakings.
A national undertaking is required to pay its salaries by transfer in a bank account (Section 7 (2)), unless otherwise specified by the Minister for Finance. Payment by cash shall be permitted only under the directives issued by the Minister of Finance in agreement with the ministers in question. Cash in excess of the amount permitted under these Directives is required to be transferred to the bank account (Section 7 (2)). A national undertaking may use postal savings banks for contact with a bank (§ 7 (2)).
Financial control of national enterprises.
(1) The Bank (§ 7 (2)) is obliged to control the business in cash according to the directives issued by the Minister of Finance in agreement with the Minister of Finance in question. The Directive also sets out, in agreement with the provisions of the Act of 16 May 1946, No. 116 Coll., on the Single Organisation of Corporate Councils, the principles for drawing up the financial part of the budget and for checking the use of funds intended for investment by national undertakings, and sets out the supporting documents which the Bank may require of national undertakings for carrying out the financial control.
(2) The results of the financial control shall be notified without delay to the central (regional) authority which is superior to the national undertaking; the central (regional) authority shall notify the bank of the measures it has taken on the initiative of its control report.
If the bank finds that there is a material discrepancy between the financial part of the national enterprise's budget and the development of its account with it, or that the use of an authorised loan or the provision of a new loan would be associated with the risk of loss, it shall immediately report to the Minister of Finance, the Minister of Finance, the Minister in question and the relevant central (regional) authority. The Minister of Finance in question shall implement the necessary measures in agreement with the Minister of Finance.
Criminal provisions.
The hearing and gross omission of the misconduct of the provisions of this law or of the regulations issued pursuant to it shall be punishable, if not by a criminal offence, by the district national committee for administrative misconduct, by a fine of up to 5 million CZK or by a free penalty (prison, lockdown) within six months or both; in the event of imperfections of the penalty on money, a replacement sentence shall be imposed at a rate of blame within six months. If both penalties are imposed at the same time, the punishment on the free side, along with the replacement penalty, must not be more than six months for an impenetrable penalty on money. Punishments on the money belong to the state.
Final provisions.
The Fund shall communicate annually to each national undertaking the amounts of profits it has used to pay the debt service under this Act; These amounts, broken down in proportion to the profits paid, are, for each national undertaking, deductible from the base of the special tax on earnings.
(1) The Government will issue a regulation setting out the statutes of national undertakings (Government Order of 15 January 1946, No 6 Coll., which issues the statutes of national industrial enterprises, and Government Decree of 9 April 1946, No 77 Coll., which empowers the Statute of national food undertakings) in accordance with this Act.
(2) The Government will adjust the details of this Act by a regulation in which, according to the nature of the case, it will also take into account the provisions of § 9, paragraph 5 of Decree No. 100 / 1945 Coll.
(3) The provisions of the Act of 13 May 1936, No 131 Coll., on State defence, and the provisions laid down therein are not affected by that Act.
This Law shall take effect on the 15th day following its publication; It shall be carried out by industry, nutrition and finance ministers.
Dr Beneš v. r.
Gottwald v. r.
Dr Dolansky v. r.
Fierlinger v. r.
Ing. Jankovcová v. r.
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Regulation Information
| Citation | Act No. 51 / 1948 Coll., on the treatment of certain financial ratios of national industrial and food enterprises |
|---|---|
| Regulation Type | - |
| Author | - |
| Collection | Code of Laws |
| Date of Promulgation | 15.04.1948 |
|---|---|
| Effective from | 30.04.1948 |
| Effective until | - |
| Status | Valid |
The regulation text is for informational purposes only.
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