Order of the Government of the Czechoslovak Socialist Republic No. 91 / 1974 Coll.
Decree of the Government of the Czechoslovak Socialist Republic on the organisation and status of production units
Valid
Effective from 01.01.1975
91
GOVERNMENT REGULATION
Czechoslovak Socialist Republic
of 26 September 1974
on the organisation and status of production units
The Government of the Czechoslovak Socialist Republic orders the implementation of the Economic Code No. 109 / 1964 Coll. as amended (full version No. 37 / 1971 Coll.) and Act No. 145 / 1970 Coll., on National Economic Planning:
Preliminary provisions
(1) Industrial and building production, centrally managed, is generally organised in production units which carry out the activities necessary to carry out a comprehensive economic process and to create conditions for their development and which are equipped with the appropriate means.
(2) The creation of production units shall be based primarily on economic efficiency, in particular technological linkages or the follow-up of production, research on production, planned fundamental changes to the structure of production, and on commercial technical and territorial considerations.
(1) Production units are in the system of state economic organisations the highest degree of organisation of the production technical base ensuring a comprehensive implementation of the tasks and objectives of the national economic plans and state economic policy.
(2) The expenditure of the production unit shall in principle be reimbursed on the basis of its own revenue and, where appropriate, on the basis of the activities of the organisations forming the production unit.
Organisation of production units
(1) The forms of production units are:
(a) a branch undertaking to which one or several national undertakings or special purpose organisations may exceptionally be associated;
(b) a group which is divided into group enterprises or group special-purpose organisations;
(c) the trust of undertakings, consisting of the Directorate-General of Trust and its subordinate national undertakings and special-purpose organisations.
(2) The Government of the Czechoslovak Socialist Republic may determine other forms of production units as appropriate.
(3) The special-purpose organisations, as well as group special-purpose organisations, are set up to carry out, as appropriate, concentrated professional activities (design, research and development, sales, supplies, etc.).
(1) The Director-General, appointed and dismissed by the Minister following the statement by the competent authority of the Revolutionary Trade Union Movement, is the head of the industry, the Group and the Directorate-General of Trust.
(2) The Director-General, after having expressed his views to the competent authority of the Revolutionary Trade Union Movement and with the agreement of the Minister of Trade, mandates the management of integrated sections of activity. The Director-General shall appoint one of the Directors-General to represent him in full.
(3) The Director of National Enterprises, special-purpose enterprises, group companies and group special-purpose organisations forming the production economic unit shall be appointed and withdrawn by the Director-General after the competent authority of the Revolutionary Trade Union Movement, unless the Minister has exercised this power.
(1) The advisory body of the Director-General shall be the Management Board. The members of the Board of Directors are experts (Section 5 (2)), directors of national companies and special-purpose organisations, group companies and special-purpose organisations, managers of the plant of the branch, representatives of the competent authority of the Revolutionary Trade Union Movement, as well as other members appointed by the Director-General.
(2) The Management Board shall in particular examine the proposals for the economic plans of the production unit, their breakdown and changes, the reports on the performance of the tasks of the production unit and the conclusions of a comprehensive assessment of its year-round management, proposals for improving the organisation and management of the production unit and other key issues of its management and development.
(3) Details of the activities of the Board of Directors are laid down in the status of the production unit or the organisational rules.
Legal status of the production units
Trade firms, companies, the Directorate-General for Trust, as well as national enterprises and special-purpose organisations are state economic organisations. Save as otherwise provided in this Regulation, the provisions of paragraphs 42 to 50 of the Economic Code shall apply to their establishment and legal status.
(1) Concern enterprises and special purpose group organisations (hereinafter referred to as "group enterprises") are group organisational units; carry out an economic activity to the extent defined by the subject-matter of the activity provided for in the set-up of the group (Section 15 (2)). The provisions of Section 18a of the Economic Code also apply to their economic activity.
(2) To the extent set out in the group status, group undertakings shall act on their behalf in economic relations and shall bear the property responsibility arising from those relationships; the status will also determine in which cases group undertakings perform on their behalf in employment and civil law relations and those governed by public administration legislation. If a group undertaking exceeds the scope of the right to act on its own behalf, but if it acts within the scope of the group undertaking's activities, the group is bound by its conduct.
(3) The provisions of the Economic Code and the Implementing and / or Specific Regulations concerning Socialist Organisations apply to the legal acts of group enterprises and to their obligations.
(4) Concerns may acquire rights and commit themselves from the date of registration of the group in the company register or registration of the change in its organisational structure.
The group is responsible for the commitments of the group company, which it is not sufficient to pay for.
(1) The liabilities between group undertakings within the group also arise from the measures of the Director-General or the authority entrusted to him.
(2) Economic disputes between group undertakings within the group are decided by the Director-General or by the authority entrusted to him.
(1) Concerns are engaged in an economic activity according to their economic plan under the group's economic plan. to the extent that they act on their behalf (Paragraph 8 (2)), they shall also act on their behalf in legal acts relating to the management of national assets, the manager of which is the group.
(2) The provisions of Act No 145 / 1970 Coll., concerning socialist organisations, apply to group companies for the development of territorial cross-sections of the plans of the Republics.
(3) The task of the State Plan to be carried out on a group undertaking, which will result in the obligation for a group undertaking to supply products, works or services to a particular customer outside the group, is a planning act in accordance with the relevant provisions of the Economic Code.
(4) The management method, as well as the rights and obligations of the group and the group undertakings in the various areas of the planned management, in particular in the areas of planning, finance, currency, prices, labour and wages, socio-economic information, control and review activities, are laid down in specific provisions.
Management relationships in production units
(1) As an economic management body, the Directorate-General for Trust directorates the activities and development of an economic unit within the scope and in the manner laid down in the legislation and the status of the production unit. A similar position is held by a branch company vis-à-vis associated national enterprises or special purpose organisations.
(2) The Director-General of the Group directs the activities and development of the production unit to the extent and in the manner laid down in the legislation and the status of the production unit. The Director-General and, where appropriate, other staff designated by the group status are entitled to act on behalf of group undertakings in matters in which group undertakings act on their own behalf (§ 8 (2)). The status of the Group's Directorate-General will be adjusted by the Statute (Section 13).
The organisation of individual production units and the management relationship between the Directorate-General for Trust and subordinate national undertakings and special-purpose organisations, between the branch undertaking and associated national undertakings and, where appropriate, the special-purpose organisations, as well as intra-group relations, regulate the status of production units. The status of the production unit shall be issued by the Director General after consultation with the competent authority of the Revolutionary Trade Union Movement and after approval by the Minister. An organisational order shall be issued for a branch without associated national enterprises or special purpose organisations.
(1) The status of the production unit shall, in accordance with specific provisions, be adapted in more detail to the relations within the production unit, in particular:
(a) the creation, provision and control of economic plans, including territorial cross-section by Republic;
(b) the procedure for imposing obligations by the measures of the superior bodies under Article 118 of the Economic Code;
(c) financial management (redistribution of funds, the creation of centralised financial resources and the management of sectoral funds of production units or funds managed by the Directorate-General);
(d) credit and foreign exchange relations;
(e) price formation and control;
(f) control and review activities;
(g) the implementation of transfers and changes to production programmes;
(h) the principles of the internal organisation of the Directorate-General for Trust, National Enterprises, special purpose organisations and group enterprises forming the production unit;
(i) the principles of cooperation with the competent authorities of the Revolutionary Trade Union Movement and other social organisations.
(2) The status of the group shall also be adjusted in accordance with specific regulations:
(a) the extent to which group undertakings may speak on their behalf (Paragraph 8 (2));
(b) the scope and method of concentrating joint activities within the group;
(c) in which cases the authorities of the group undertaking act on matters relating to the group undertaking on behalf of the group;
(d) in which cases undertakings between group undertakings arise from a measure taken by the Director-General or by the body authorised by him;
(e) the way in which economic disputes between group undertakings are settled.
(3) The Statute of the Trust of Enterprises and a branch with associated national enterprises or special purpose organisations will also be adapted in accordance with specific provisions:
(a) the scope and method of concentrating joint activities in the Directorate-General (branch) or subordinate organisation;
(b) in which cases, the Director-General or other designated staff shall be entitled to act on behalf of subordinate organisations;
(c) the way in which disputes between subordinate national undertakings or special-purpose organisations are discussed in advance as regards the creation, modification and cancellation of obligations under economic contracts.
Specific provisions on the setting-up and registration of companies
(1) The body setting up the group will also determine its breakdown into group enterprises. Paragraph 49 and 50 of the Economic Code apply mutatis mutandis to the merger, division and cancellation of group companies.
(2) In addition to the requirements laid down in Section 43 of the Economic Code, the set-up of the group must include the name and registered office of the group undertakings and the object of their activities.
(1) In the case of a group, the name and registered office of the group, to which the group is divided, is entered in the company register in addition to the facts set out in Section 108 (1) of the Economic Code.
(2) Concerns are registered in the company register at the register court responsible for the registered office of the group company.
(3) In the case of a group undertaking, the method of setting up the company, the date of its establishment, the name, registered office, designation of statutory bodies (indicating the functions and names) and the way in which they sign the company and the name and registered seat of the group of which the group is part, and the date of registration of the group in the company register or the date of registration of the change in its organisational structure.
(4) A change or termination of the facts referred to in paragraphs 1 to 3 and the cancellation of the group undertaking shall also be entered in the company register.
Transitional and final provisions
(1) The internal organisation of national undertakings, special-purpose organisations and group undertakings shall determine the organisational rules to be laid down by their Director after approval by the Director-General. The rules of organisation of the Directorate-General for Trust and Industry shall be laid down by the Director-General; in respect of a branch undertaking without associated national enterprises or special purpose organisations, it may be issued after approval by the Minister.
(2) The organisational arrangements shall lay down the principles governing the expression of the results of the management of each in-house unit. In addition, it must be determined by which authority and by which principles within the organisation decide on the property payments between the internal services and on the allocation of the property damage suffered by the organisation by the payment of property sanctions, damages, etc., to individual internal services.
If it is appropriate for a particular professional activity to be procured jointly for several production units, the Minister responsible may set up a special purpose organisation directly subordinate to the Ministry.
The provisions of this Regulation shall apply mutatis mutandis to an organisation of centrally managed economic activities other than industrial and construction production, unless the organisation is governed by specific provisions. The relevant ministers may provide for the necessary derogations due to the nature of the activity.
Statutes of the existing production units issued under the former rules shall remain in force unless they conflict with this Regulation.
Government Regulation No. 132 / 1965 Coll., on the organisation and status of production units is hereby repealed.
This Regulation shall enter into force on 1 January 1975.
Dr Strougal v. r.
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Regulation Information
| Citation | Decree of the Government of the Czechoslovak Socialist Republic No. 91 / 1974 Coll., on the organisation and status of production units |
|---|---|
| Regulation Type | - |
| Author | - |
| Collection | Code of Laws |
| Date of Promulgation | 04.10.1974 |
|---|---|
| Effective from | 01.01.1975 |
| Effective until | - |
| Status | Valid |
The regulation text is for informational purposes only.
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