Act No. 73 / 1959 Coll.
Local Economy Act
Valid
Effective from 01.01.1960
73
Law
of 19 November 1959
on the local economy
The National Assembly of the Czechoslovak Republic decided on the following Act:
Preliminary provisions
Continuous growth in the standard of living of workers requires that services, repairs, maintenance and production of local significance are further improved and expanded. These tasks are primarily provided by the national committees by local economic organisations which establish and manage themselves. Successful performance of these tasks requires the creation of a local economy organisation that allows the most efficient management of the local economy by national committees while ensuring the widest possible application of the workers' initiative.
Tasks of the local economy
(1) Services, repair, maintenance and production of local importance are provided by national committees and their executive bodies in the municipal services sector, local construction, local industry and housing. In these sectors, the following activities shall in particular be carried out:
(a) in the municipal services sector, services, small repairs, maintenance, in particular to the population, are provided and, where justified, minor additional production is carried out. This activity shall be carried out in particular in the following groups of fields: urban transport, municipal external treatment, medical and other services, maintenance and repair of handicrafts;
(b) in the local construction sector, agricultural construction is carried out, provided, organised and managed by experts on the implementation of construction works through single agricultural cooperatives, construction and craft repairs of residential property, small investment buildings, general repair and maintenance of other buildings of local importance and the production of building materials for local use;
(c) repair activities are carried out in the local industry, consumer goods are produced according to individual orders, simpler machines and tools and in smaller series products to supplement the production of other sectors;
(d) in the housing sector, good housing management, maintenance and management are ensured.
(2) In carrying out these tasks, the national committees shall rely on the creative initiative of the workers and shall make the most use of local raw materials resources and local labour; they focus in particular on the universal improvement and expansion of services paid by the population.
Organisational forms of the local economy and its management
The provision and provision of services, repairs, maintenance and production of local importance and activities related thereto shall be organised by the national committees in local economy enterprises, in local economy budgetary organisations, in the facilities of national committees and in small establishments of national committees (hereinafter referred to as "local economy organisation '). Specific regulations govern the housing organisation.
(1) The organisation of the local economy is managed by the Board of the National Committee which set them up on fundamental and important issues.
(2) The Council of the National Committee set up by the organisation manages these organisations with the widest participation of workers, encourages and directs the activity of workers to continuously improve and expand services to the population, addressing all important issues of the local economy in cooperation with the permanent committees. In addition, the Council of this National Committee sets out the conditions for citizens to be able to evaluate the activities of local economic organisations themselves, in particular to create assets from among the citizens and to use the assistance of street committees, women's committees, etc. In order to resolve the serious issues related to the development of the local economy, the Board of the National Committee set up by the Organisation shall convene economic and technical economic conferences, professional staff assets, etc.
Local economy enterprises
(1) The local economy enterprises (hereinafter referred to as "undertakings") shall establish a national committee, in accordance with local conditions and needs, in accordance with the requirements of the development of the whole national economy, in the area of which the population will be provided with services, repairs, maintenance or production of local significance, after the advice of the national higher-level committee and the relevant trade union body has been given.
(2) When establishing an undertaking, the national committee shall determine the name, registered office and basic operational content of the undertaking. The property measures entrusted to the undertaking shall be taken by the Board of the National Committee, which shall also issue the instrument of incorporation.
Legal ratios, assets and liabilities of the undertaking
(1) The undertaking is a legal person; becomes her registration.
(2) The application for registration shall state the date on which the undertaking is to be registered; However, registration may not be requested retroactively.
(1) An undertaking may acquire only such rights and enter into obligations which are consistent with the performance of its tasks laid down in particular in the instrument of incorporation or the Statute.
(2) The legal acts of an undertaking which do not comply with the performance of its tasks are invalid. If either party has been initiated on the basis of such a legal act, all that has been or is to be implemented by a party that knew or had to know at the time of the legal act on illegality must be put into the state budget. Instead of non-cash execution, its monetary value shall be entered in the budget.
(3) The courts and arbitration authorities shall take into account the nullity of such acts on their own initiative. in a decision establishing the nullity of an act, the court (arbitration authority) shall determine the amount of money which the parties are required to pay to the State budget pursuant to the preceding paragraph.
The State is the owner of the company's assets. The company is entrusted with this property in administration. The undertaking also acts on its own behalf in respect of such assets.
(1) The undertaking's liabilities may be met only on the assets held by the undertaking in its management, with the exception of its basic funds, and on its debts, under conditions laid down by specific provisions. The State is not responsible for the undertaking.
(2) The assets held by the undertaking and its debts cannot be claimed to satisfy the State's claims.
The Council of the National Committee, whose measure (Paragraph 5 (2)) has been entrusted with the management of the enterprise, shall at the same time determine which liabilities belonging to that property are transferred to the undertaking. Where the management of national assets is transferred to the undertaking by agreement, the transfer of commitments in this Agreement shall be adjusted. The commitments shall be transferred to the undertaking on the date on which the assets are taken over; the transfer of liabilities is waived by the existing debtor; the creditor's acceptance is not required.
(1) The Board of the National Committee set up by the undertaking may remove the property or liability from the undertaking and take other measures thereon, in particular to transfer the management of the property or to another undertaking subordinate to it. The transfer of property management or the transfer of an undertaking to an undertaking the head office of which is within the perimeter of another national committee may be carried out in agreement with the Board of that national committee; This also applies in cases where the property or liability is transferred to an organisation subordinate to a national committee other than the organisation of the local economy.
(2) The Board of the National Committee set up by the undertaking may also exclude property or liability from the undertaking and transfer the management of the property or liability in agreement with the competent Minister or other head of the Central Office to its jurisdiction.
(3) The transfer of liabilities shall exempt the existing debtor; there is no need for the creditor to be granted.
Director
(1) The activity of the undertaking shall be managed and organised by the Director, who shall be the head of the undertaking, representing it and acting on its behalf. It shall be appointed and withdrawn by the Board of the National Committee set up by the undertaking, after a statement by the relevant trade union body. The appointment and removal of the Director shall be in writing.
(2) The appointment, revocation and dismissal of the Director are not covered by the rules on the co-operation of the Race Committee of the basic organization of the Revolutionary Trade Union Movement in the recruitment, inclusion and dismissal of staff. The appointment and release of the Director shall not require the approval of the relevant section of the Council of the District National Committee. The Director shall not cease to have an employment relationship by revocation or resignation; General regulations apply to its demise.
(3) In particular, the Director shall manage the establishment of the business plan, approve it and ensure its implementation, ensure that, by implementing the latest techniques and by improving the organisation of work in the enterprise, ensure the improvement of the organisation and the level of its management, manage the selection, deployment and education of cadres, ensure that state discipline, contractual, financial, technological and labour discipline, maintain wage regulations, manage national assets and ensure health and safety at work.
(4) The Director shall be responsible for the proper functioning of the undertaking and for the performance of its tasks to the Board of the National Committee set up by the undertaking.
(5) The Director shall act separately in matters relating to the management of the undertaking, unless a decision on a case is reserved to the Board of the National Committee or under its authority to the Head of an authority of the Board.
(6) The rights and obligations of the Director will be further adapted by the Statute.
(1) In managing the enterprise, the Director shall work closely with the trade union, with which he shall discuss all important production issues and issues affecting the employees of the enterprise.
(2) In particular, the Director shall, in close cooperation with the trade union, develop organisational and educational activities and create the conditions for an ever wider participation of workers in the management of the undertaking, in particular in the drawing up and monitoring of the implementation of the plan, as well as in the management and protection of national assets. It shall take advantage of the experience of the workers, promote the initiative and criticism of the workers, take note of their comments and draw conclusions from them without delay. In order to achieve these objectives, it is obliged to co-operate in the organisation of production meetings, socialist competition and the movement of inventors and improvements.
(3) The improvement and expansion of services, repairs, maintenance and production of local importance to the population require the Director to take care of critical comments from citizens and their incentives to improve the company's work when managing the business.
Within the framework of the rules in force, the director of the undertaking shall apply such incentives to the material interest of all the components and workers of the undertaking in the results of their work, which shall lead to an increase in the quality and quantity of products, services and performance which ensure the needs of the population and to a constant increase in labour productivity.
Company employees
(1) The employment and wage ratios of the employees of the undertaking shall be governed by the provisions applicable to staff covered by the rules on government wage policy.
(2) Special provisions apply to the cooperation of the Race Committee of the Revolutionary Trade Union Movement in the regulation of employment and wage ratios of employees and other important issues relating to employees.
(1) The common interest of the undertaking and its employees in the successful performance of the tasks of the undertaking and in the employment obligations is expressed in the terms of the Conditions of Employment of Other Servants, issued by the Director of the Company in agreement with the competent authority of the Revolutionary Trade Union Movement in accordance with the model conditions of employment. The Government shall, on a proposal from the Central Council of Trade Unions, issue a standard working order. The Conditions of Employment shall be binding once it has been duly declared on the holding.
(2) Dispute measures may be imposed on workers for infringements of their duties, namely reprimand, public reprimand or temporary transfer to another work for up to 3 months. The provision of reprimand and public reprimand to the director of the company will be more detailed in the Statute (§ 25); the imposition of disciplinary measures on other staff members shall be adapted in more detail in accordance with the principles defined by the model working order.
(1) The Director shall conclude a collective agreement on behalf of the undertaking with the staff represented by the competent authority of the Revolutionary Trade Union Movement. In particular, the collective agreement sets out how the main planned tasks of the enterprise will be ensured, how the progressive technology, technology, organisation of work, principles of wage policy and the material involvement of individuals and communities, the budget of the enterprise's workers' fund, as well as the mutual commitment of management and employees to increase the productivity of the enterprise, to improve the efficiency of the company, to improve safety at work and to deepen the care of workers in social, health and cultural terms.
(2) In establishments and workshops, a convention is concluded between the heads of these departments and the competent authority of the basic organization of the Revolutionary Trade Union Movement, which addresses the issues of the performance of the basic tasks and of the care of employees by establishment and workshop.
(3) The Director of the Enterprise and the competent authorities of the basic organization of the Revolutionary Trade Union Movement control and discuss the fulfilment of the obligations laid down by the collective agreement and convention and are responsible for their fulfilment. Disputes arising from the performance of a collective agreement and convention shall be decided jointly by the authority of the superior undertaking and the higher trade union body.
(4) The details of collective agreements and conventions are laid down by the Central Council of Trade Unions.
Principles of corporate governance and management
The basic principles applicable to the management of the socialist economy shall apply in accordance with each other's management. In particular, the principle of planning should be applied to all business activities so that all economic issues are dealt with in a consistent way with their political aspect and the economic and political directive in question, so that management of fundamental issues is concentrated at higher levels of organisation, whereas management of other issues has been effectively decentralised in such a way that the lower authorities can take their own initiative, the management of the undertaking and its organisational services is entrusted only to a single leader and the participation of management workers is extended.
In accordance with the principles of social security, the enterprise manages, in applying the basic principle, to cover the expenditure of the enterprise by its own revenue and to improve the results of the business with appropriate incentives for material interest. Intra-company chozrasčet is applied.
Changes in the organisation of the enterprise
The national committee set up by the undertaking may, after the advice of the national committee of a higher level, transfer the undertaking to another national committee in agreement with that national committee.
(1) The national committee set up by the undertaking may, after consulting the Board of the national higher-level committee, merge the undertaking with another undertaking or merge two or more undertakings into a new undertaking, divide or abolish the undertaking. Where those measures concern undertakings subject to different national committees, those national committees shall implement them by mutual agreement.
(2) The merged and divided undertaking and the coherent undertakings shall cease to exist on the date on which the undertaking resulting from the merger, division or merger was registered.
The Board of Supervisors of the Regional National Committee, after having expressed the advice of the National Committee set up by the undertaking, may remove the undertaking from the organisation under this Act and transfer the undertaking to another jurisdiction in an agreement with the Minister or other Head of Central Office to which the undertaking is transferred.
Changes in the organisation of undertakings under § § 20 to 22 can only be made after the relevant trade union body has indicated.
If the Board of the National Committee set up by the undertaking does not take measures on all the assets and liabilities of the company cancelled when the firm is cancelled, it shall be wound up in accordance with special regulations issued by the Ministry of Finance.
Company status
In agreement with the Regional Committees of the relevant trade union according to the principles laid down by the Government, the Councils of the Regional National Committees shall issue the status of enterprises of the local economy. The Statute shall, in particular, lay down detailed arrangements for the legal situation, organisation, business activity and corporate governance of the national committees and their executive bodies.
Other organisational forms of the local economy
Local Economy Budget Organisations
(1) If the setting-up of an undertaking would not be economical and effective, either because it is a provision of free services which satisfy the general interest of the social needs, or because the services provided by the population are small, it shall establish a national committee to provide them with a budgetary organisation of the local economy.
(2) The Head of the Budget Organisation of the Local Economy shall be the Head; It shall be appointed and withdrawn by the Board of the National Committee which has set up the organisation and shall also be responsible for the fulfilment of its duties and tasks imposed on the budgetary organisation of the local economy.
National Committee equipment
If the scope of the services provided is so small that it would not be economical to set up an undertaking or a budget organisation of the local economy, the National Committee shall provide them in its facilities.
Small establishments
(1) National committees may, with the direct and active participation of citizens, provide for small repairs, services and maintenance and use of local sources of raw materials in small establishments of national committees.
(2) Small establishments may be set up by national committees only where the activities referred to in paragraph 1 cannot be effectively provided by an economic or budgetary organisation of the local economy, the establishment of a national committee or other organisation of the state or cooperative sector.
(3) The small-scale establishment of the National Committee shall carry out its activities primarily for the population of the municipality where it is established or for the population of the immediate vicinity, in principle using local labour. The total cost of the establishment is to be covered by its own income and the wage costs are usually to be covered by the population's income.
Common provisions
(1) The budgetary organisation of the local economy, installations and small-scale establishments of the national committees shall be set up by the National Committee, after consulting the Board of the national higher-level committee and the relevant trade union body.
(2) The budgetary organisation of the local economy, installations and small-scale establishments of the national committees are not legal persons. The legal situation, organisation, activity and management of the national committees and their executive bodies shall be further adapted by the Ministry of Finance in cooperation with the competent central authorities and authorities and with the Councils of the Regional National Committees.
Technical development of the local economy
(1) In the fields for which the technical development of another institution is not ensured or where the results of the work of the authorities of other departments cannot be used directly in the local economy, the technical development of the local economy is provided by development centres established in suitable enterprises of the local economy.
(2) The content, organisation and manner of work of development centres will be defined by the status of development centres, which will be issued by the authority responsible for the common affairs of the local economy.
General, transitional and final provisions
The advisory and coordination activities for the executive bodies of the national committees and certain common issues of the local economy shall be provided by the body set up under specific rules.
Specific rules apply to the management of national assets in local economic organisations and to their claims unless the arrangements are contained in this Act. Specific rules also apply to planning, financing, material technical supplies, accounting records and statistics.
The power to determine the extent of nationalisation for a nationalised enterprise entrusted to the local economy is for the management of the regional national committees.
(1) Act No. 105 / 1953 Coll., on local industry and municipal economy is hereby repealed.
(2) They are hereby repealed.
Decree No 22 / 1955 of the Ministry of Economic Affairs of the Czech Republic issuing the status of local industrial enterprises,
Decree No 23 / 1955 of the Ministry of the Local Economy of the Ú. l., which issues the status of undertakings of the municipal economy; and
Decree No 24 / 1955 of the Ministry of Economic Affairs of the Czech Republic issuing the status of regional sales and supply bases of the local economy,
from the date on which the statutes issued under this Act become effective.
This Law shall take effect from 1 January 1960; it shall be carried out by all members of the Government.
Novotný v. r.
Fierlinger v. r.
Broad v. r.
Dolan v. r.
Kopecký v. r.
Bark v. r.
Shimonek v. r.
Jankovcová v. r.
Dr Acid v. r.
Plojhar v. r.
Dr Nobility v. r.
David v. r.
Děuriš v. r.
Krajčir v. r.
Kromir
Colonel General Lomský v. r.
Machachová v. r.
Dr Non-edible v. r.
Polack v. r.
Strougal v. r.
Uher v. r.
Lamb
Jonah v. r.
Dr Kahuda v. r.
Reitmajer v. r.
Dr Skoda v. r.
Dr Hlasák v. r.
Potato
ge. Black v. r.
Dr Neuman v. r.
Ouzký v. r.
Pospíšil v. r.
ge. Púčik v. r.
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Regulation Information
| Citation | Act No. 73 / 1959 Coll., on Local Economy |
|---|---|
| Regulation Type | - |
| Author | - |
| Collection | Code of Laws |
| Date of Promulgation | 15.12.1959 |
|---|---|
| Effective from | 01.01.1960 |
| Effective until | - |
| Status | Valid |
The regulation text is for informational purposes only.
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