Full text of Act No. 526 / 2002 Coll.
Full text of Act No. 227 / 1997 Coll., on Foundation and Foundation Funds and on the amendment and addition of certain related laws (Law on Foundation and Foundation Funds), as is apparent from the amendments made by Act No. 210 / 2002 Coll.
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13.12.2002
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526
PRESIDENT OF THE GOVERNMENT
Announces
full text of Act No. 227 / 1997 Coll., on Foundation and Foundation Funds and amending and supplementing certain related laws (Law on Foundation and Foundation Funds), as is apparent from the amendments made by Act No. 210 / 2002 Coll.
THE LAW
on foundations and foundations
Parliament has decided on this law of the Czech Republic:
FUNDS AND FUNDS
BASIC PROVISIONS
(1) The Foundation or the Foundation Fund are special-purpose associations of assets (1) established and established under this Act for the achievement of general objectives. In particular, the general aim is to develop spiritual values, protect human rights or other humanitarian values, protect the natural environment, cultural monuments and traditions, and develop science, education, physical and sports.
(2) The Foundation or the Foundation Fund is a legal person.
(3) The name of the Foundation shall include the designation "Foundation '; the title of the Foundation Fund must include the designation" Foundation Fund'; other persons may not use that designation in their name or business name.
(1) The assets of the Foundation consist of the assets of the Foundation and other assets of the Foundation.
(2) The Foundation uses the proceeds of the Foundation's assets and other assets to achieve the purpose for which it was set up. The assets of the Foundation are a monetary expression of the sum of both cash and non-cash deposits and donations entered in the Foundation Register (the Register).
(3) The Foundation Fund uses all its assets to achieve the purpose for which it was established.
(4) For the purposes of this Act, the grant shall mean all that is the Foundation or the Foundation Fund in accordance with this Act and the Statute of the Foundation or the Foundation Fund provided to a third party for the purpose for which the Foundation or Foundation were set up.
(5) For the purposes of this Act, a grant shall mean all that is provided by a third party to the Foundation or to the Foundation Fund for the purpose for which the Foundation or the Foundation Fund have been set up.
ESTABLISHMENT AND EXERCISE OF NATION AND FUND
Establishment of the Foundation and the Foundation Fund
(1) The Foundation or the Foundation Fund shall be established by a written contract concluded between the founder or the instrument of incorporation, if the founder is one or a will (hereinafter referred to as "the instrument of foundation"). Where the Foundation or the Foundation is established by contract, the authenticity of the signature of the contracting authorities must be officially verified; where the Foundation or the Foundation is established by means of a instrument of incorporation or wills, the instrument of award shall be drawn up in the form of a notarial registration.
(2) The instrument of award, if not for a will, must contain:
(a) the name and registered office of the Foundation or Foundation;
(b) the name and, where applicable, the business name, registered office and identification number of the founder (s), or, where appropriate, proof of the legal personality of the foreign founder, if any, if it is a legal person, or the name, surname or business name, birth number or date of birth, and permanent residence of the founder (s), if it is a natural person;
(c) the definition of the purpose for which the Foundation or the Foundation fund is established; the specific purpose for which the Foundation or the Foundation or the Foundation are set up must be consistent with the general objective,
(d) the amount and, where applicable, the value of the asset deposit which each entity undertakes to deposit into the Foundation or the Foundation Fund; if the deposit is not in cash, the subject matter of the deposit must be determined and awarded by the expert; securities must be valued either by an expert or by a person managing securities under contracts under a special law, 1a)
(e) the number of members of the Management Board, the names, surnames, birth numbers or, where applicable, the date of birth, and the permanent residence of the members of the First Management Board, indicating how they act on behalf of the Foundation or the Foundation,
(f) the number of members of the Supervisory Board, names, surnames, birth numbers or date of birth, and the permanent residence of the members of the First Supervisory Board, or the name, surname, birth number or date of birth, and permanent residence of the First Supervisory Board, if the supervisory board exercises the supervisory authority;
(g) laying down a rule to limit the costs of a Foundation or a Foundation Fund pursuant to Paragraph 22 or to determine that the rule is to be laid down by the Statute of the Foundation or the Foundation Fund;
(h) the designation of the person who manages the assets of the founder (s) until the foundation or fund is established;
(i) the conditions for the grant of the grant of the grant or, where applicable, the range of persons to whom it may be granted or the indication that such formalities are to be laid down in the Statute of the Foundation or of the Foundation.
(3) If the Foundation or the Foundation's Foundation or the Foundation's Foundation is set up, the latter shall include the designation of the Foundation's name or the Foundation's fund and the formalities referred to in paragraph 2 (c), (d), (g) and (i), as well as the designation of the person who appoints the first members of the Foundation's bodies or the Foundation's Foundation's fund or, where appropriate, the auditor, if not appointed in the will, and shall carry out other acts relating to the creation of the Foundation or Foundation's fund (hereinafter referred to as "the executor of the will '); a will which does not fulfil those requirements shall be void in the part containing the establishment of the Foundation or the Foundation Fund.
(4) The total value of the assets may not be less than CZK 500,000 and may not be lower than that for the duration of the Foundation.
(5) The assets may consist solely of cash, securities, real estate and movable property, as well as other property rights and other assets that meet the assumption of a permanent return and do not have liens on them.
(6) Other assets of the Foundation or assets of the Foundation may consist solely of funds, securities, real estate and movable property, as well as other property rights and other asset values on which the liens are not linked.
Statute of the Foundation and the Foundation Fund
(1) The Statute of the Foundation or of the Foundation or of the Foundation Fund provides for the procedure for the negotiation of the bodies of the Foundation or of the Foundation or of the Foundation Fund, the conditions for granting the Foundation's contributions and, where appropriate, the range of persons to whom they may be provided, the manner in which the Foundation or the Foundation's fund is to be provided, as well as other matters to be included under this Law in the Foundation's and the Foundation's or Foundation's fund's statute.
(2) The Statute of the Foundation or of the Foundation or of the Foundation Fund shall be issued within 30 days of the date of the Foundation or of the Foundation or of the Foundation and its amendments shall be decided by the Management Board.
(3) Save as otherwise provided in this Act (Paragraph 22 (2)), the Statute of the Foundation or the Foundation Fund must be in accordance with the Charter of Foundation.
(4) The Foundation or the Foundation shall, upon request, make the Statute available; everyone is entitled to look into it and take statements or copies.
Establishment of Foundation and Foundation Fund
(1) The Foundation or the Foundation Fund is established on the date of entry into the Foundation Register. The register shall lead the court designated by the special law-making body to keep a commercial register ("the register court '). The register shall be a public list; it also includes the status of the Foundation or Foundation Fund and the annual report.
(2) The application for registration of the Foundation or the Foundation Fund shall be made by the founder or, where appropriate, by the executor of the will or by a person authorised by them in writing; the authenticity of the signature of the principal must be officially verified.
(3) The application for registration of the Foundation or the Foundation Fund shall be accompanied by an instrument of incorporation, a document of payment of the cash deposit, with the Foundation's document of establishment of a special account in which the cash deposit is deposited and, where applicable, a document of receipt of the non-cash deposit issued by the person managing the deposits in accordance with Article 6 (2), a contract for the management of securities under a special law, (1a) if the securities which will be managed by an authorised person under that contract are part of the assets, and a statement of the penalties of the members of the Board of Directors, the Supervisory Board and, where applicable, a review; an extract from the criminal record may not exceed six months. The members of the Management Board, the Supervisory Board and, where applicable, the auditor who is not resident in the Czech Republic, shall be accompanied by a relevant document from the State of residence certifying that they have not been convicted of an intentional offence. The document shall not be more than six months old.
(4) The following information shall be entered in the register:
(a) the name, registered office and identification number of the Foundation or Foundation Fund;
(b) the name and, where appropriate, the business name, registered office and identification number of the founder (s), if any, if it is a legal person, or the name, surname or, where applicable, business name, birth number or date of birth and permanent residence of the founder (s), if it is a natural person,
(c) the purpose of the Foundation or the Foundation Fund;
(d) the amount of the assets or the amount of the assets of the fund;
(e) the names, surnames, birth numbers and, where appropriate, the date of birth and the permanent residence of the members of the Management Board and the manner in which they are to be treated on behalf of the Foundation or the Foundation or the Foundation;
(f) the names, surnames, birth numbers or date of birth, and the permanent residence of the members of the supervisory board, or of the auditor, if not established,
(g) a list of the assets constituting a cash or non-cash deposit or a donation into the assets of the trust, indicating its description and value, the business name of the bank or branch of the foreign bank and the number of the special account in which the deposit or grant is deposited, the details of the securities management contract under the special law, (1a) if the securities managed under that contract are part of the assets of the trust by the authorised person.
(5) Unless otherwise provided for in this law, the provisions of the Commercial Code and the Civil Code relating to the Commercial Register, its management and proceedings relating to the Commercial Register shall apply mutatis mutandis to the Register and its management and proceedings in matters relating to the Commercial Register.
(1) In matters relating to the creation of the Foundation or the Foundation, until such time as the Foundation or the Foundation have been established, the organisers shall act jointly or as such who have been empowered in writing to do so; if the Foundation or the Foundation of the Foundation is established, that person shall be the executor of the will at the end of the proceedings.
(2) Property deposits are managed by a person designated in the fund until the foundation or fund is established; if the Foundation or the Foundation Fund is established by a will and does not provide otherwise, that person shall be the executor of the will from the end of the proceedings.
(3) The commitments entered into under paragraph 1 and the ownership and other rights referred to in paragraphs 1 and 2 shall be transferred to the Foundation or the Foundation Fund on the date of their establishment; the person managing the deposits shall be obliged to forward it to the Foundation or the Foundation Fund without undue delay after they have been established. The arrangements for the transfer of ownership to immovable property are without prejudice. If the Foundation or the Foundation Fund is not established, the person managing the deposits shall be obliged to return it to the founders without undue delay or, where appropriate, to the beneficiaries, if the Foundation or the Foundation have established wills.
REPEAL AND ENFORCEMENT OF NADATION AND FUND
(1) The Foundation or the Foundation shall cease to exist on the date of removal from the Register. The termination of the Foundation or the Foundation Fund shall be preceded by its abolition with or without liquidation if their assets are transferred by the merger to another Foundation or Foundation. The liquidation shall also not be carried out if the application for bankruptcy is rejected for lack of assets or if there is no assets left to the Foundation or the Foundation Fund after the bankruptcy procedure has been completed.
(2) The Foundation or the Foundation Fund are hereby repealed.
(a) the achievement of the purpose for which they were set up on the date specified in the Management Board's decision to achieve the purpose of the Foundation or the Foundation Fund;
(b) a decision by the Management Board to merge with another Foundation or Foundation Fund on the date specified in the Merger Agreement;
(c) by decision of the Court of First Instance on the revocation of the Foundation or the Foundation Fund on the date referred to in this Decision or, otherwise, on the date on which the decision is given;
(d) a declaration of bankruptcy or a rejection of an application for a declaration of bankruptcy for lack of assets.
(3) The Court of First Instance, acting on a request from the founder, the executor of the probate, the Management Board or the person certifying the legal interest, shall abolish the Foundation if:
(a) the assets of the Foundation do not yield any income on a permanent basis and the Foundation has no other assets and cannot thus fulfil the purpose for which they were established;
(b) the assets of the foundation were reduced to CZK 500,000 and the foundation did not decide to increase the assets of the other assets or to merge with any other foundation within the period laid down in Section 23 (12).
(4) The Court of First Instance, acting on a proposal from the founder, the executor of the probate, the Management Board or the person certifying the legal interest, shall abolish the Foundation Fund if the assets of the Foundation Fund have been permanently exhausted and the Foundation Fund is therefore unable to fulfil the purpose for which it was established.
(5) The Court of First Instance, acting on a request from the founder, the executor of the will or the person who certifies the legal interest, the Foundation or the Foundation, shall also abolish the fund if:
(a) in the course of its activities, the Foundation or the Foundation, or the Foundation, in a serious or repeated manner, infringes that law, instrument or statute;
(b) no meeting of the Management Board has taken place in the previous year or the members of the Foundation's bodies or Foundation Fund have been elected, or a auditor instead of members whose membership or functions have ceased more than a year ago; or
(c) the Foundation or the Foundation does not, for at least two years, fulfil the purpose for which it was set up, in particular if the Foundation does not grant the Foundation's grant contributions at that time;
and the Foundation or the Foundation or the Foundation shall not remedy it within the time limit set by the court.
Merging of the Foundation and the Foundation Fund
(1) The merger of the Foundation with another Foundation may be decided by the Management Board, provided that the purpose of the Foundation with which it is to be merged, hereinafter referred to as the "Receiving Foundation ', is the same or similar purpose for which the Foundation was set up. The assets of the acquiring foundation must be increased by the assets of the merged foundation. The proposal to merge the Foundation with another Foundation must always be decided by the Management Board if, during the duration of the Foundation, the assets of the Foundation fall below 500 000 CZK and the Foundation does not fulfil the assets of the Foundation within 1 year of the end of the financial year in which the assets of the Foundation fell, at least 500 000 CZK.
(2) The merger of the Foundation Fund with the Foundation may be decided by the Management Board, provided that the assets of the Foundation Fund are not sufficient to fulfil the purpose for which the Foundation was set up and the purpose of the Foundation with which it is to be merged (the acquiring Foundation) is the same or similar purpose for which the merged Foundation was set up.
(3) The merger of the Foundation Fund with another Foundation Fund may be decided by the Management Board, provided that the assets of the Foundation Fund are insufficient to fulfil the purpose for which the Foundation Fund was set up and the purpose of the Foundation Fund with which it is to be merged, hereinafter referred to as the "Receiving Foundation ', is the same or similar purpose for which the Merger Fund was set up.
(4) The Foundation or the Foundation Fund may not be merged if this is excluded by the Endowment List. This does not apply in the case of the merger of the Foundation pursuant to § 8 (1) last sentence.
(5) Before the merger decision, the merged Foundation shall conclude a written merger agreement with the receiving Foundation or the merged Foundation with the receiving Foundation or the merged Foundation with the receiving Foundation. An annex to the Merger Agreement shall be an overview of the assets of the merged Foundation or the assets of the merged Foundation and their liabilities, not more than three months before the date of the merger.
(6) The register shall include the deletion of the merged foundation or fund and the recording of the change with the acquiring foundation or fund on the same date; the proposal for the deletion of the merged foundation or fund shall be supported by a merger contract. The Registry Court shall reject the application for erasure if it contradicts the merger of the conditions laid down by this Law.
(7) The assets of the Foundation or of the Foundation or of the Foundation shall be transferred from the Register as well as the rights and obligations of the Foundation or of the Foundation or of the Foundation to the Receiving Foundation or Foundation.
Disposal of the Foundation and the Foundation Fund
(1) Save as otherwise provided for in this Act, a separate law shall apply to the liquidation of the Foundation or the Foundation Fund. 3)
(2) The liquidator shall be appointed by the Management Board of the Foundation or the Foundation, except for the cancellation of the Foundation or the Foundation or the Foundation pursuant to Article 7 (2) (c) and (d); in such cases, the liquidator shall be appointed by the court. If the Board of Directors does not appoint a liquidator without undue delay, the liquidator shall be appointed by the court and of its own motion. The remuneration of the liquidator shall be determined by the person who appointed the liquidator.
(3) The winding-up procedure shall be determined by the liquidator in such a way that only the assets necessary to meet the commitments of the Foundation or the Foundation or the Foundation are purchased.
(4) The liquidator shall offer the liquidator the balance to the Foundation or the Foundation which has the same or similar purpose unless the instrument provides that the winding-up balance is to be transferred to another Foundation or the Foundation. if the liquidator of such a foundation or fund of foundations is not established or if the Foundation or fund of foundations so established does not refuse to take over the balance of the liquidation, the liquidator shall offer the balance by announcing in a national expanded journal to the other foundations, then to the Foundation funds; the liquidator shall, as a priority, transfer the liquidation balance to the Foundation or, where appropriate, to the Foundation, which are the most immediate to the liquidated Foundation. If the liquidation balance is not accepted by any foundation or fund, the liquidator shall offer the liquidation balance to the municipality in which the foundation or fund is established. If the municipality does not accept the offer within 60 days of service, the liquidation balance shall pass to the State after the expiry of that period. The liquidation balance shall be used by the acquirer to meet the general objectives.
(5) The provisions of paragraph 4 shall not apply where the Foundation or the Foundation or the Foundation have received assigned funds from the European Communities or their institutions or organisations under the financial assistance programme. In such a case, the liquidator shall decide on the disposal balance available after prior agreement of the competent authority of the State.
NATION AND FUND AUTHORITIES
Management Board
(1) The Management Board shall manage the assets of the Foundation or the Foundation Fund, manage the activities and decide on all matters of the Foundation or Foundation Fund and shall be the statutory body of the Foundation or Foundation Fund.
(2) The Management Board's exclusive competence is to:
(a) issue the Statute and decide on its amendments;
(b) approve the budget and its amendments;
(c) approve the annual accounts and the annual activity and management report (the annual report);
(d) decide on a merger if the merger is not excluded by the instrument of incorporation;
(e) elect new members of the Management Board and the Supervisory Board, or, where appropriate, an auditor, unless otherwise provided for in the Foundation Charter, and decide on the removal of a member of the Management Board, a member of the Supervisory Board or, where appropriate, an auditor, if the conditions of membership or function are no longer met; the members of the Management Board shall elect and dismiss its Chairperson;
(f) determine the amount of remuneration for the performance of the duties of a member of the Management Board, the Supervisory Board and, where appropriate, the auditor;
(g) decide to increase or reduce the assets of the foundation under the conditions laid down by this law.
(1) The Management Board shall have at least three members. The number of members of the Management Board shall always be divisible by three, unless otherwise provided for in the Foundation Charter.
(2) Only a natural person who is eligible for legal action may be a member of the Management Board and is not a person close to the Foundation or to the Foundation in a legal or similar relationship.
(3) For the purposes of this law, those who have been convicted of an intentional crime shall not be regarded as righteous. The integrity shall be evidenced by an extract from the criminal record or, where appropriate, by a relevant document from the State of residence of the person concerned.
(4) The members of the Management Board may not be a natural person or a person close to it, who shall be provided with the means to fulfil the purpose of the Foundation or the Foundation or the Foundation, as well as a member of the statutory or supervisory body of a legal person, provided that the means to fulfil the purpose of the Foundation or the Foundation are provided to that legal person.
(1) The term of office of the members of the Management Board shall be three years, unless otherwise provided for in this Act or in the instrument of foundation. Reelection as a member of the Management Board may be renewed, unless otherwise provided for in the Foundation Charter.
(2) If membership of the Management Board is lost to a member of the Management Board before the end of his term of office, the Management Board shall elect a new member for a vacancy; its term of office shall end on the date on which the term of office of the member whose membership of the Management Board has expired, unless otherwise provided for in the Charter.
(1) The first members of the Management Board shall be appointed by the founder or, where appropriate, the executor of the will, if they are not appointed in the will.
(2) Unless otherwise provided for in the Foundation Charter, after the appointment of the first members of the Management Board, the names of one third of those members whose term of office ends after a year and one third of the members whose term of office ends after two years of their appointment shall be determined by drawing lots. The Management Board shall elect new members for the vacancy, whose term of office is already three years, unless otherwise provided for in the Charter.
(3) The Foundation may provide that a number of members of the Management Board shall be elected on the basis of a proposal from certain legal or natural persons designated by the founder or, where appropriate, the deceased.
(1) The Chairman of the Management Board shall convene and manage the meetings of the Management Board.
(2) The approval of a majority of its members is necessary for the decision of the Management Board, unless otherwise provided for in the Charter. When deciding, the voting right of the members of the Management Board shall be equal. In the event of a tie, the chairman shall vote.
(1) Membership of the Management Board shall cease to exist
(a) the expiry of the term of office;
(b) death;
(c) an appeal if the member no longer fulfils the conditions for membership or has infringed, in a serious or repeated manner, this law, the Charter of Foundation or the Statute of the Foundation or of the Foundation or of the Foundation or of the Foundation or of the Foundation, or for other reasons, provided that they are laid down in the instrument of foundation;
(d) by resignation.
(2) The Management Board shall decide on the removal of its member on the grounds laid down in this Act within one month of the date on which he or she became aware of the grounds of appeal, not later than six months after that reason has occurred. If the Management Board does not decide on an appeal within the prescribed time limit, the Court shall, on a proposal from a member of the Management Board, the Supervisory Board, the founder, the executor of the estate set up by the Foundation or the Foundation, or the person who certifies the legal interest.
If, as a result of the termination of membership of the Management Board, the Foundation or the Foundation does not have a statutory body or only one of its members remained on the Management Board, the court shall appoint new members of the Management Board on a proposal from the Director, the executor of the will, the Supervisory Board or on its own motion.
Supervisory Board
(1) The Supervisory Board is the control body of the Foundation or the Foundation.
(2) The Supervisory Board must be established whenever the assets or assets of the Foundation Fund exceed CZK 5 000 000 000. In other cases, the Supervisory Board may be set up provided that the Foundation or the Foundation or the Foundation fund so provides.
(3) The Supervisory Board shall in particular:
(a) check compliance with the conditions laid down for the grant of the grant and the accuracy of the accounts kept by the Foundation or the Foundation;
(b) review the annual accounts and the annual report;
(c) oversees whether the Foundation or the Foundation or the Foundation operates in accordance with the law, the Charter of Foundation and the Statute of the Foundation or the Foundation;
(d) draw the attention of the Management Board to the deficiencies identified and make proposals for their removal;
(e) report to the Management Board at least once a year on the results of its control activities.
(1) The Supervisory Board shall be entitled, in particular, to:
(a) to examine the books and other documents relating to the Foundation or the Foundation;
(b) convene extraordinary meetings of the Management Board where the interests of the Foundation or of the Foundation or the Foundation so require, unless the Chairman of the Management Board so requests.
(2) The members of the Supervisory Board have the right to participate in the meetings of the Management Board and must be given the floor if they so request.
(1) The function of a member of the Supervisory Board is incompatible with that of a member of the Management Board or of a person authorised to act as a representative of the Foundation or the Foundation.
(2) Paragraph 11 to 15 of this Act applies mutatis mutandis to the Supervisory Board and its members, except for the authorisation to elect new members of the Supervisory Board (§ 12 (2)).
Revizor
(1) If the Supervisory Board is not set up, its powers under Articles 17 and 18 of this Act are exercised by the auditor.
(2) Paragraphs 11 (2) to (4), 12, 13 (1) and (3), 15 and 19 (1) of this Act apply mutatis mutandis to the function of the auditor.
USE OF THE MONITORING AND FUND
(1) Property of the Foundation or of the Foundation or of the Foundation Fund may be used only in accordance with the purposes and conditions laid down in the Endowment Charter or in the Statute of the Foundation or of the Foundation or of the Foundation Fund as a grant and to cover the costs associated with the administration of the Foundation or of the Foundation.
(2) Costs related to the management of the Foundation or the Foundation Fund shall be borne by the Foundation or the Foundation Fund separately from the Foundation's contribution. The costs relating to the management of the Foundation or the Foundation Fund shall include, in particular, the costs of maintaining and evaluating the assets of the Foundation or of the Foundation or the Foundation Fund, the costs of promoting the purpose of the Foundation or the Foundation Fund and the costs of running the Foundation or the Foundation Fund, including the remuneration for the duties of a member of the Management Board, the Supervisory Board and, where appropriate, the auditor.
(3) The grant granted by the Foundation or the Foundation Fund in accordance with the purpose for which the Foundation or the Foundation have been set up shall be required to be used by the person who has been granted in accordance with the conditions laid down by the Foundation or the Foundation Fund; otherwise it shall repay or refund the grant in cash within the time limit set by the Foundation or the Foundation Fund.
(4) The person to whom the Foundation's or the Foundation's fund's grant has been granted must demonstrate, at the request of the Foundation's or the Foundation's fund's how and for what purpose it was used.
(5) A grant may not be granted to the members of the Foundation's bodies or the Foundation's fund or the auditor.
(6) The Foundation or the Foundation may not participate in the financing of political parties or political movements.
(1) In order to limit the costs associated with the administration of the Foundation or of the Foundation or the Foundation Fund, the Foundation's or the Foundation's Statute shall provide for one of the following rules:
(a) the total annual costs of the Foundation or the Foundation Fund relating to the management of the Foundation or the Foundation Fund may not exceed a certain percentage of the annual total income of the Foundation or the Foundation Fund;
(b) the total annual costs of the Foundation or the Foundation Fund related to the management of the Foundation or the Foundation Fund may not exceed a certain percentage of the value of the annual grant contributions provided; or
(c) the total annual costs of the Foundation or the Foundation Fund relating to the management of the Foundation or the Foundation Fund may not exceed a certain percentage of the fund's assets or assets in accordance with its status on 31 December of the same year.
(2) The rule laid down in paragraph 1 may not be amended for at least five years. The period referred to in paragraph 1 shall be the calendar year.
(1) The Foundation or the Foundation may not, on its own behalf, engage in business, except for the rental of real estate, the holding of lotteries, raffle, public collections, cultural, social, sports and educational events. The Foundation or the Foundation may not use its assets to acquire holdings in other persons, unless otherwise provided for in this Law.
(2) The assets of the Foundation or the Foundation Fund must not be the collateral or the subject of any other guarantee of the undertaking.
(3) The assets of the Foundation shall be inalienable, provided that they are determined by the founder or donor; in other cases, it may be available, including a change in the physical composition of the assets, but only in accordance with the objective of the Foundation and with the care of the proper economy. The Foundation is obliged to deposit funds which form part of the assets of the Foundation into a separate account with a bank or branch of a foreign bank operating in the Czech Republic, 3a) or may use them
(a) the purchase of investment instruments3b) issued in the Member State of the Organisation for Economic Cooperation and Development (OECD) by the following investment instruments denominated in Czech or foreign currency:
1. money market instruments;
2. bonds and other securities constituting a claim that are registered in the public market in the OECD Member State;
3. units of open-ended mutual funds or, where applicable, shares issued by collective investment units of a type other than a closed-end type whose status limits investment in shares and similar instruments to 30%;
4. Share certificates of other open mutual funds or, where applicable, shares issued by collective investment units other than the closed type,
5. bonds issued by States or central banks;
(b) purchase of real estate.
(4) The total value of the following investment instruments must not exceed 30% of the value of the assets:
(a) investment instruments denominated in foreign currency;
(b) units of open-ended mutual funds or, where applicable, shares issued by units of collective investment other than a closed-end type, excluding units of mutual funds and units of collective investment referred to in paragraph 3 (a) (3); and
(c) bonds whose assessment of the quality of the investment instrument and of the capital market participant (hereinafter referred to as "the rating") by at least two international credit rating agencies does not reach at least the same quality as the credit rating of the Czech Republic or which do not have the guarantee of the State or the guarantee of another entity with a rating of at least the same quality as that of the Czech Republic and carried out by at least two international credit rating agencies.
(5) The funds which form part of the assets cannot be lent.
(6) The Foundation may:
(a) to acquire holdings in public limited liability companies to the extent provided for by this law,
(b) be the founder of a community of general interest. (c)
(7) The overall extent of the Foundation's acquired shareholding in public limited liability companies must not exceed 20% of the Foundation's assets, minus the value of the assets. Registered securities of public limited liability companies may be purchased and sold by the Foundation only on public markets. The commercial interest of the Foundation in the assets of a public limited liability company may not exceed 20% of that public limited liability company's assets.
(8) The Foundation or the Foundation may not be a member of a public commercial company, an associate of a limited partnership, a silent partner or a member of a cooperative whose members have an obligation to pay more than a Member contribution to cover losses of the cooperative, or may not be a member of another legal entity, where such a member is liable for its obligations.
(9) In the case of the sale of assets of the trust fund or the lease of real estate which are part of the assets of the foundation or of the fund, the buyer or the tenant shall not be a member of the management board, supervisory board or, where appropriate, an auditor or a person close to them (4), or a legal person, provided that a member of its statutory body is a member of the management board or supervisory board of the foundation or of the fund or of the auditor.
(10) The fortune increases
(a) the contribution of the funds referred to in Article 3 (5), if they are a grant;
(b) the deposit of funds and securities (investment instruments) referred to in Article 23 (3); or
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Regulation Information
| Citation | The full text of Act No. 526 / 2002 Coll., Act No. 227 / 1997 Coll., on Foundation and Foundation Funds and amending and supplementing certain related laws (Law on Foundation and Foundation Funds), as is apparent from the amendments made by Act No. 210 / 2002 Coll. |
|---|---|
| Regulation Type | Declared full text |
| Author | - |
| Collection | Code of Laws |
| Date of Promulgation | 13.12.2002 |
|---|---|
| Effective from | - |
| Effective until | - |
| Status | Valid |
The regulation text is for informational purposes only.
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