Slovak Financial Law News 2004

Act on Disposal of Property of Public Institutions

Act No. 176/2004 Coll. on Disposal of Property of Public Institutions and amending and supplementing the Act of the National Council of the Slovak Republic No. 259/1993 Coll. on the Slovak Forest Chamber as amended by Act No. 464/2002 Coll.

This act regulates the disposal of property of legal entities established by a special regulation as a public institution or an establishment and of legal entities established pursuant to special acts.

However, the act does not relate to the management of the funds, disposal of the securities, or disposal of property when the obligations within the scope of business of the public institution are fulfilled.

Pursuant to this act, a public institution is authorised to use its property for business activities, as a contribution to the property of a business company or as a contribution at the establishment of a business company as well as a contribution to the property of a legal entity which is not a business company. However, it is not authorised to use its property as a contribution under a silent partnership agreement. In order to secure its obligations the public institution can establish a pledge or any other encumbrance over its property. The public institution can further sell the unnecessary real estate, unnecessary movable asset, the residual value of which exceeds SKK 100,000, conclude an exchange agreement for the purpose of acquisition of the ownership right to the asset, temporarily lease or borrow unnecessary property and donate unnecessary movable asset to a legal entity which does not carry on business. However, the public institution is not authorised to donate unnecessary real estate.

The absence of a written form of legal acts in the disposal of the property of the public institution caused by invalidity of such legal act.

The statutory body of the public institution decides on disposal of its property which is obliged to request, under the sanction of invalidity, in enumerated cases a written approval of the self-governing or other collective authority determined by the by-laws of the public institution. The act also lists individuals to whom the ownership of the property of the public institution cannot be transferred.

This Act came into force on 1 May 2004.

---

Next: Act on European Economic Interest
Up: April 2004
Previous: Amendment to the Cadastral Act