What is Act No. 88 / 1988 Coll.?

Act No. 88 / 1988 Coll., on State Enterprise — State Enterprise Act.

When it became Act No. 88 / 1988 Coll. effectiveness?

Act No. 88 / 1988 Coll. became effective 01.07.1988.

Is Act No. 88 / 1988 Coll. still valid?

Yes, Act No. 88 / 1988 Coll. is still valid and effective.

Act No. 88 / 1988 Coll. - State Enterprise Act

88

THE LAW

of 14 June 1988

on a state enterprise

Strategy to accelerate social economic development The Czechoslovak Socialist Republic, following the significant rise in the standard of living of the people, requires a consistent rebuilding of the economic mechanism to intensify and increase the efficiency of the socialist economy, deepen the socialist democracy and increase people's participation in governance and governance.

State enterprises and cooperatives, which play a crucial role in developing the economic potential of society and in achieving the main objective of social production in socialism, are the key elements of the national economy, which is to satisfy the material and spiritual needs of all people as fully as possible.

The state enterprise performs its economic and social tasks in accordance with the policy of the Communist Party of Czechoslovakia, leading and directing the forces of socialist society and state. The organizations of the Communist Party of Czechoslovakia operating in a state enterprise are the political core of the working group, unifying the efforts of the management of the state enterprise, the bodies of the socialist self-government, the social organisations associated in the National Front and all workers to meet all social needs. They exercise the right of party control over the management of the state enterprise and the authorities of the socialist self-government and ensure the implementation of the cadre policy of the Communist Party of Czechoslovakia, forming the participation of workers in the management and development of the socialist self-administration of the labour group.

Social organisations in the National Front operate in a state enterprise in accordance with their statutes, actively participate in the development of the creative initiative of workers and increase their responsibility for the results of the economic and social activity of the state enterprise.

The Revolutionary Trade Union Movement, which is involved in organising the participation of workers in the management and development of production and in improving the working, health, social and cultural conditions of the working group, has an important role to play in the development of the state enterprise, defending their rights, legitimate interests and needs.

In ensuring the interests of the young generation and in raising young members of the working group, the Socialist Youth Union has an important mission in the state enterprise.

All activities of a state enterprise are governed by the principle of democratic centralism. The five-year State economic and social development plan is a fundamental tool for managing a state enterprise by the State.

In order to create all-round conditions for the performance of these tasks and achieve the stated objectives, the Federal Assembly of the Czechoslovak Socialist Republic decided on this law:

ČÁST I

INTRODUCTORY PROVISIONS

§ 1

Purpose of the law

The purpose of this Act is to adapt the status, legal circumstances and principles of the operation of a state-owned enterprise (hereinafter referred to as "the undertaking ') as a core article of the national economy.

§ 2

Company, its social mission and working group

(1) The enterprise is a socialist organisation whose main social mission is to effectively and economically meet the needs of socialist society; In accordance with this mission, the enterprise ensures its economic development and, depending on the results of the management, the social development of its working group.

(2) The company is a socialist producer of goods (products, works, services); it operates independently on the basis of a state plan for economic and social development (hereinafter referred to as the "State plan '), a complete and socialist self-government.

(3) The working group of the enterprise consists of workers working in it in an employment relationship, with the exception of the secondary employment ratio (1).

ČÁST II

STABILITY AND MANAGEMENT OF THE UNDERTAKING

§ 3

State and enterprise

(1) The Socialist State, in accordance with its economic and organisational function, creates, in particular, conditions for the business activity of the enterprise by means of generally binding legislation; in particular:

(a) establish long-term economic standards, the nominal tasks of the nation-wide economic importance and limits on limited resources;

(b) identify financial and monetary instruments to guide the business, in particular contributions, taxes, subsidies, financial management rules and credit conditions;

(c) lay down rules on the allocation of resources created between companies and undertakings and the basic proportion of their use for consumption and development in the undertaking;

(d) lay down prices or rules for their formation and amendment;

(e) establish wage policy principles and wage regulation rules;

(f) lay down rules for the conduct of foreign economic activities;

(g) adopt anti-monopoly measures and lay down rules on competition;

(h) decide on the establishment and demise of the undertaking.

(2) The activity and territorial scope of an undertaking may be restricted or affected only under the conditions and in the manner laid down by law.

§ 4

Legal status of the undertaking

(1) The undertaking is a legal person; act in legal relations on its behalf and be responsible for those relationships.

(2) The undertaking is not liable for the obligations of the State or other entities. The State is not liable for the undertaking's obligations unless otherwise provided by the law.2)

(3) Against the interference of economic management authorities in their activities which are contrary to generally binding legislation, an undertaking may seek protection in respect of economic arbitrage under the conditions laid down in the legislation.3)

(4) The economic management body which, by intervening in the undertaking's activities, has caused property damage to that undertaking is obliged to replace it. The conditions and extent of compensation for property damage as well as cases where compensation is not granted are laid down in Law 3)

(5) Where an undertaking has been able to cause material damage to the State or to another undertaking or entity by its activities, it shall be obliged to replace it under the conditions and to the extent laid down by law.

§ 5

Internal organisation of the enterprise

(1) The internal organisation of the undertaking and the organisation of internal management are within the exclusive competence of the undertaking.

(2) The internal organisation of an undertaking shall be governed by the organisational rules or other internal organisational rules, as appropriate.

(3) Where an undertaking is a member of an internal organisational unit, the organisational order or other internal organisational regulation may specify the extent to which the internal organisational unit acts in legal relations on behalf of the undertaking; legal acts shall be carried out by its managers and, where appropriate, by other staff, designated by the rules of organisation and, where appropriate, by other internal organisational rules.

§ 6

Property

(1) The company manages the property in socialist social ownership, which consists of matters and property rights, including the right to the results of research, development, project and other similar activities (national property), which is the property of all the people and which was entrusted to it when it was established; Furthermore, the company manages items and property rights, including the rights to the results of research, development, project and other similar activities acquired during its business and thus became part of the assets in socialist social ownership (national property).

(2) The company has the right and obligation to hold this property in socialist social ownership, to use it, to dispose of it, to protect it and to reproduce it in order to achieve the best possible economic results and to fully satisfy the needs of socialist society. Property may be withdrawn only in cases provided for by law, in principle in return for payment.

(3) The financial expression of the assets in socialist social ownership, with which the company continues to operate its business, is the wealth. The company is obliged to reproduce this property, which must not be removed from its purpose except for special management schemes under this Act.

Financial position of the undertaking

§ 7

The enterprise is a direct body of relations with the state budget (federal budget of the Federation or national budget of the respective republic), state funds and budgets of national committees.

§ 8

Self-financing

(1) The company is to meet its needs and costs of income derived mainly from its business activities and from other sources.

(2) On the basis of its profits, the company pays the State's contributions and taxes.

(3) The profit remaining after the implementation of the levies and taxes (hereinafter referred to as the "applicable profit") is used separately by the company, making priority allocations to the funds it is obliged to create. The profit to be used cannot be withdrawn from the company except for the special management scheme provided for in Section 15, when the company is subject to a attenuation programme.

(4) The depreciation of the basic funds shall remain in full and shall be used by the undertaking under its responsibility separately; This does not apply if the firm is subject to a attenuation programme.

§ 9

State plan

(1) The five-year state plan, which underpins the implementation of the economic policy of the Communist Party of Czechoslovakia and of the Socialist State, is a fundamental tool for the central management of the company by the State. In principle, the objectives and tasks of the State Plan apply to the company by economic means.

(2) The company is a direct addressee of the outputs of the state plan, which are in particular the standards, the nominal tasks (including binding state contracts), limits and subsidies.

(3) The standards, tasks and limits are binding on the undertaking.

§ 10

Business activity and socialist legality

(1) The company carries out its activities in accordance with the principle of socialist legality.

(2) The company develops its activities according to the principles of planning and economic competition in such a way that, in making use of all the possibilities given to it by the socialist legal order, it successfully fulfils its mission. In this context, it takes appropriate economic risk.

(3) The undertaking must not put its interests above those of society; in particular, it must not abuse its economic position at the expense of other entities or otherwise act against the interests of the company.

§ 11

Social self-administration of the working group and participation of workers in the development and management of the enterprise

(1) The workers are involved in deciding the fundamental issues of the economic and social activity of the enterprise through the socialist self-administration of the labour group ("socialist self-administration").

(2) The participation of workers in the development and management of the enterprise is also carried out through social organisations, organised in the National Front and active in the enterprise, in particular the Revolutionary Trade Union Movement and the Socialist Youth Union.

§ 12

Business cooperation with national committees and election programmes of the National Front

(1) The undertaking is obliged to cooperate in its economic and social activities with the relevant national committees and to participate in the comprehensive economic and social development of its territorial districts in the manner and under the conditions laid down by law. In his work, he shall comply with the decisions of the national committees, given in accordance with their respective competences. The relevant national committees shall also comment on the development of the undertaking and on the fundamental changes to the subject matter of its activity (business).

(2) The company participates in the development and implementation of the National Front electoral programmes.

ČÁST III

THE ENTERTAINER, THE ENTERTAINMENT AND THE ENTERTAINMENT

HLAVA PRVNÍ

Business Founder

§ 13

Founder

(1) The founder of the undertaking is a central administration or a national committee.

(2) The founder only exercises the function of economic management vis-à-vis the undertaking under the conditions and to the extent laid down by law and in this capacity controls the economic and social activity of the undertaking.

§ 14

Rights and obligations of the founder

(1) As a general rule, the founder proposes candidates for the post of Director following bankruptcy proceedings; may make an application for appeal to the Director.

(2) In the event that an undertaking threatens or unduly reduces its assets or is unable to fulfil its levy or tax obligations, or is unable to create mandatory corporate funds within the specified scope, or if it has an economic loss for more than one year, the founder shall gradually be obliged:

(a) apply the consolidation scheme to the undertaking under the consolidation programme for a specified period and monitor its implementation;

(b) establish direct management for a maximum period of three years;

(c) decide to merge or merge undertakings or decide to split or cancel undertakings where the measures referred to in points (a) and (b) have not led to the removal of the causes for which they were taken.

(3) The founder may also decide to merge, merge or divide the enterprise:

(a) on the basis of a programme of structural changes to the national economy (development or attenuation of the sector or sector) approved by the competent government;

(b) on a proposal from an undertaking or, where appropriate, from undertakings whose merger, merger or division is concerned.

(4) The founder may also cancel the undertaking for the reasons referred to in paragraph 3 (a).

(5) The founder may decide to impose a phasing-out programme (Paragraph 15) on the undertaking for the reasons set out in paragraph 3 (a).

(6) The founder shall, before deciding on the merger, merger, division or cancellation of the undertaking, take account of the company's proposals and opinions and discuss these measures with the relevant national committee and the revolutionary trade union body.

(7) The founder confirms the annual accounts of the company and the fulfilment of the binding outputs of the state plan.

Specific management schemes

§ 15

Depth programme

(1) The attenuation programme is a set of economic, technical, organisational, cadre, social and other measures aimed at reducing production or other economic activity in the sector or sector concerned.

(2) The attenuation programme imposed by the founder must be properly and within a specified period of time.

§ 16

The consolidation programme

(1) The consolidation programme is a set of economic, technical, organisational, cadre, social and other measures aimed at restoring the firm's capacity to perform its economic functions.

(2) The consolidation programme imposed by the founder shall be properly and within a specified period.

§ 17

Direct management

(1) The direct management of the company consists of the transfer of the management of the company from the existing management bodies to the trustee established by the founder. In the exercise of direct management, the administrator shall be subordinate to the founder.

(2) The establishment of direct management and the provisions of the AIFM are entered in the company register. The application for registration shall be submitted by the founder. The scope of the firm's current management bodies shall be transferred to the administrator on the date of registration; on that date, the office of Director shall cease, the authorities of the Socialist Authority and the appointment of a representative or, as the case may be, representatives of the Director of the Enterprise (§ 26 (3)).

(3) The administrator shall act on behalf of the undertaking in all its matters and shall be responsible for the performance of his duties as founder to whom he reports quarterly and annual reports.

(4) Before the end of direct management, the administrator shall submit to the founder a final report on the results of direct management. On that basis, the founder shall submit a proposal to delete the direct management of the firm from the company register or decide to cancel the company.

(5) After the completion of direct administration, if the company is not terminated, the founder shall ensure within 90 days the provisions of the managing bodies of the company (§ 25). Until the date of taking up his duties, the current administrator shall act as Director.

HLAVA DRUHÁ

Establishment and demise of the undertaking

§ 18

Establishment of the enterprise

(1) The company is established by decision of the founder on the date of registration in the company register.

(2) The application for registration of the undertaking in the company register is submitted by the founder. The founder shall add to the application for registration of the undertaking in the company register:

(a) the instrument of incorporation;

(b) the consent of the competent authority of the State to the subject matter of the activity (business), where specific provisions require such approval.

(3) The founder shall discuss the creation of the undertaking with the relevant national committee. If a federal central administration is the founder of an undertaking, it shall discuss the creation of the company with the central planning body of the Republic.

(4) The type, organisational form and size of the holding are chosen by the founder in a differentiated manner with regard to the business's mission; In doing so, it effectively uses and connects elements of the company, group, branch and territorial and other principles of organisation to create the widest possible scope for socialist entrepreneurship.

§ 19

Foundry

(1) The founding act of the undertaking is issued by the founder.

(2) The instrument of incorporation shall include:

(a) the designation of the founder;

(b) the name, registered office and identification number of the undertaking; (4) the name must exclude any confusion with the names of other organisations;

(c) the definition of the basic object of the activity (business) or, where appropriate, the definition of the compulsory subject of the activity (business);

(d) the determination of the assets of the undertaking when it is established and, where appropriate, the provisions governing the transfer of rights and obligations to the undertaking;

(e) the definition of the period for which the undertaking is founded and, where appropriate, the task for which it is based.

§ 20

Business Foundation Initiative

(1) If an undertaking or its internal organisational unit finds that it is appropriate to set up another undertaking in order to effectively secure certain economic activities, it may submit such a proposal to the relevant founder.

(2) The Founder is obliged to assess the proposal to set up another undertaking in all political, economic and social contexts without undue delay, but within six months at most, and to communicate his decision to the applicant.

§ 21

Breakdown, merging and merging of the holding

(1) The division, merger or merger of the company takes place on the basis of the decision of the founder (s) on the date of registration in the company register. When writing these changes, the founder (s) shall act accordingly in accordance with Paragraph 18 (2).

(2) The divisive undertaking ceases to exist and its assets and liabilities are transferred to the extent determined by the founder to the newly created or, where appropriate, the acquiring undertakings.

(3) The merged undertaking ceases to exist and its assets and liabilities are transferred to the acquiring undertaking.

(4) When the undertakings are merged, the existing undertakings shall cease to exist and their assets and liabilities shall be transferred to the newly created undertaking.

§ 22

Termination of an undertaking

(1) The company ceases:

(a) division, merger, merger, cancellation without liquidation;

(b) the liquidation of the undertaking cancelled;

(c) by the end of the period on which it was based or by fulfilling the task for which it was based.

(2) The company's demise shall take place on the basis of the facts referred to in paragraph 1 on the date on which the firm is removed from the company register. The application for the removal of the company from the company register shall be submitted by the founder or, where appropriate, by the liquidator.

(3) In the event of the company being terminated, the company shall, by the end of the period on which it was founded, fulfil the task for which it was founded or, without liquidation, the founder shall take measures on all its assets and liabilities. If they do not do so, the firm shall be wound up in accordance with specific rules. 5)

(4) The founder shall discuss the demise of the undertaking with the relevant national committee. When deciding on the demise of an undertaking by a founder who is a federal central government body, it shall discuss the demise of the undertaking with the relevant central planning body of the Republic.

(5) The company's demise under paragraph 1 (a) and (b) is expressed by the competent authority of the Revolutionary Trade Union Movement.

§ 23

Notification obligation

(1) An undertaking which has transferred assets and liabilities of a deceased undertaking is obliged to immediately notify the undertakings and other entities affected by the company's demise of the undertaking and the transfer of its assets and liabilities.

(2) If the undertaking has ceased to exist after the period on which it was founded by fulfilling the task for which it was set up or by cancellation without liquidation, the reporting obligation of the founder shall apply. the liquidator has this obligation when the undertaking is wound up.

§ 24

Founding Agreement

(1) If the merging or merging of several founders is concerned, these founders shall decide by mutual agreement.

(2) When deciding on the merger of companies, the founders shall agree which of them will act as the founder vis-à-vis the newly created company.

ČÁST IV

MANAGEMENT AUTHORITIES OF THE UNDERTAKING AND SOCIAL AUTONOMOUS

§ 25

Managing bodies of the enterprise

(1) The head of the business shall be the director (possibly another manager), who shall be the sole manager of the business and shall be responsible for it and its results to the founder and the working group.

(2) The Director, as the statutory body of the undertaking, acts on behalf of the undertaking in all its matters.

(3) The bodies of the Socialist Authority, which are the assembly of a working collective of an undertaking or the assembly of delegates of a working group of an undertaking (hereinafter referred to as "assembly") and the Board of the working group of an undertaking (hereinafter referred to as "the Council"), are involved in proceedings within the scope of this law.

Director

§ 26

(1) The Director shall act separately in matters relating to the undertaking unless its decision is subject to the approval of the competent authority of the Socialist Authority or the approval of the competent authority of the Revolutionary Trade Union Movement.

(2) The Director shall be obliged to take part in the deliberations of the Socialist Authority.

(3) The Director shall, after consulting the staff of the undertaking, appoint a representative who shall represent him in full in his or her absence. If more than one representative is appointed, it shall determine the order of the representatives.

(4) The Director and his representative (s) shall be entered in the company register. An application for registration and deletion of the Director shall be made by the founder, the application for registration and the removal of the representative (s) by the Director.

§ 27

(1) The Director of the Enterprise shall be elected by the Assembly by secret ballot. 6) A proposal to elect a Director for a five-year term of office shall be submitted to the Assembly by the founder after discussion on the Board.

(2) Candidates for the post of Director are selected by the founder of candidates who have political, professional and moral preconditions for such a post, as a rule on the basis of a written bankruptcy.

(3) The day on which the Director takes office shall be the day of his election unless the Assembly has set a later date. On the basis of the results of the elections, the Director shall be appointed by the founder.

(4) During its term of office, the Director of the Enterprise shall withdraw the Assembly by secret ballot on a proposal from the founder or the Board.

(5) On expiry of the term of office of the new Director, the current Director shall act as Director.

(6) The election of the new Director shall take place within 90 days of the end of the term of office of the former Director.

Bodies of the Socialist Authority and its internal organisation

§ 28

(1) The bodies of the company's socialist self-administration are the assembly and council.

(2) On the basis of the decisions of the Assembly, the Assembly or, where appropriate, the Assembly of Delegates of Working Collections of the Internal Organisations Units of the Company (establishments, establishments, workshops and the like) may be convened on a proposal from the Board and after consultation with the Director. They shall elect their advice as required.

(3) The Assembly and, where appropriate, the Assembly of Delegates and the Board of Labour Collections of the undertaking's internal organisational units shall have within the relevant unit the competence established by the Assembly. Paragraphs 30 and 31 shall apply mutatis mutandis to the advice of the working groups of internal organisational units.

§ 29

Assembly

(1) Assembly

(a) elect the director of the undertaking and decide on the application for his appeal;

(b) elect and withdraw members of the Board and determine the number of members thereof;

(c) approve, on a proposal from the Director:

1. the five-year plan for the economic and social development of the enterprise and its changes;

Date of Promulgation	14.06.1988
Effective from	01.07.1988
Effective until	-
Status	Valid

Citation	Act No. 88 / 1988 Coll., on State Enterprise
Regulation Type	-
Author	-
Collection	Code of Laws

Act No. 88 / 1988 Coll.

State Enterprise Act

Contents