Key Benefits:
ACT
of 20 December 1996
o municipal economy
Chapter 1
General provisions
Article 1. [ Substantive Scope] 1. The Act lays down the rules and forms of the municipal economy units of local government, consisting in the performance by these units of own tasks, in order to meet the collective needs of the local government.
2. The municipal economy shall include, in particular, tasks of a general interest, the purpose of which is the current and uninterrupted meeting of the collective needs of the population by means of the provision of services commonly available.
Article 1a. [ Local Government Units] Whenever the law refers to local government units, this is understood to mean:
(a) the municipality within the meaning of the Act of 8 March 1990. of the municipal government (Dz. U. of 2016 r. items 446, 1579 and 1948) or
(b) the district within the meaning of the Law of 5 June 1998. o the district administration (Dz. U. of 2016 r. items 814, 1579 and 1948) or
c) voivodship in the meaning of the Act of 5 June 1998. o self-government of the voivodship (Dz. U. of 2016 r. items 486, 1948 and 2260).
Article 2. [ Conducting the municipal economy] The municipal economy may be carried out by local government units in particular in the forms of self-government budget establishment or commercial law companies.
Article 3. [ Assignment of the tasks to be performed] 1. Local government units by contract may entrust the performance of tasks in the scope of municipal economy to natural persons, legal persons or organizational units without legal personality having regard to the provisions of the Act of 27 August 2004 on health care services financed from public funds (Dz. U. of 2016 r. items 1793, as of late. zm.) and the provisions of the Act of 27 August 2009. on public finances (Dz. U. of 2016 r. items 1870, with late. zm.) either in general terms or in the rules of law:
1) of the Act of 19 December 2008. o public-private partnership (Dz. U. of 2015 items 696 and 1777 and of 2016 items 1920);
2) of the Act of 29 January 2004. -Public procurement law (Dz. U. of 2015 items 2164, with late. zm.);
3) of the Act of 24 April 2003. about the activity of the public benefit and about the volunteer (Dz. U. of 2016 r. items 1817 and 1948 and of 2017 items 60 and 573);
4) of the Act of 16 December 2010. public transport by collective transport (Dz. U. of 2016 r. items 1867, 1920 and 1954 and from 2017 items 60);
5) of the Act of 21 October 2016. on the contract for works or services concessions (Dz. U. Entry 1920).
2. If, for the conduct of a given type of activity on the basis of other laws is required to obtain an authorisation, the units of the local government may entrust the performance of tasks only to the entity holding the required authorization.
Article 4. [ Powers of authority constituting] 1. If the special provisions do not provide otherwise, the bodies constituting the units of local government shall decide:
1) the choice of the way of conducting and the forms of the municipal economy;
2) the amount of prices and fees or the way prices and charges are set for municipal services of a utility nature and for the use of facilities and utility facilities of public self-government units.
2. The powers referred to in paragraph 2. In accordance with Article 1 (1) (b) of Regulation (EC) No 22/EC, the bodies which constitute local authorities may delegate
Article 5. [ Application of provisions of the Act] The provisions of the Act shall apply mutatis mutandis to the performance of the tasks referred to in art. 1, by intercommunal relationships, counties unions, district and municipal unions (communal unions), through metropolitan compounds, through the capital city of Warsaw and within the framework of communal agreements.
Chapter 2
Local government establishments
Article 6. [ Creation, merger, conversion and winding-up of local budget establishments] 1. The bodies constituting entities of local government may create, combine, transform into a different form of organizational and legal entities and liquidate the local government establishments in accordance with the provisions of the Act and the provisions of the Act of 27 August 2009. on public finances.
2. Self-government budget establishments shall run the financial economy on the basis of the rules laid down in the provisions of the Act of 27 August 2009. on public finances.
Article 7. [ Activities going beyond public service tasks] Activities which go beyond public service tasks cannot be carried out in the form of a self-government budget establishment.
Article 8. [ Application of the provisions of the Law on local workers] The rules on local government shall apply to the local staff of the budgetary establishments, unless otherwise provided for in the special provisions.
Chapter 3
Companies with the participation of local government units
Article 9. [ Creating companies with the participation of local government units] 1. Local government units may create limited liability companies or joint-stock companies, and may also join such companies.
2. The units of local government may also create limited partnership or limited joint-stock companies referred to in art. 14 para. 1 of the Act of 19 December 2008. o public-private partnership.
Article 10. [ Conditions for the creation of capital companies] 1. In addition to the utility of public interest, the municipality may create and enter commercial law companies, if the following conditions are met:
1) there are unmet needs of local government in the local market;
2) the unemployment in the municipality significantly affects the level of life of the local government, and the application of other measures and the resulting legal measures did not lead to economic activism, and in In particular, a significant recovery of the local market or the permanent reduction of unemployment.
2. In addition to the utility of general interest, the municipality may create and join commercial law companies if the divestiture of a municipal property which is likely to constitute a contribution of non-monetary communes to a company or to a regulation in another Member State the way will result in a major property loss for the municipality.
3. Restrictions on the creation of commercial law companies and the communal approach to them referred to in paragraph 3. 1 and 2, shall not apply to the municipality holding shares or shares of companies dealing with banking activities, insurance and advisory, promotional, educational and publishing activities for the benefit of local government, and other companies important for the development of the municipality, including the sports clubs operating in the form of a capital company.
4. Outside the sphere of public utility of the voivodship may form companies of commercial law on the principles and in the forms specified in the Act on Self-Government of the voivodship.
Article 10a. [ Supervisory Board] 1. In companies with the participation of local government units operates the Supervisory Board.
2. The provisions of the Code of Commercial Companies shall apply to supervisory boards in companies with the participation of local government units, subject to the provisions of this Act.
3. The tenure of a member of the supervisory board in companies with the majority participation of local government units lasts 3 years.
4. (repealed)
5. The entity representing a local or municipal self-government entity or a municipal legal person in exercising the rights of the shares entitled to those entities, as a candidate for a member of the supervisory body shall indicate the person who meets the requirements referred to in art. 19 (1) 1 of the Act of 16 December 2016. on the principles of state management (Dz. U. Entry 2259 and from 2017 items 624), with the exception of having a positive opinion of the Council for companies with the participation of the State Treasury and the state legal persons.
6. Members of the Management Board of companies with the participation of local government units shall appoint and cancel the Supervisory Board.
7. An entity representing a local or local government entity or a municipal legal person in the exercise of the rights of shares entitled to those entities, shall be obliged to take action to determine, by means of a legal resolution the assembly or the statutes of the company with the participation of the local government unit, the requirements to be met by the candidate as a member of the governing body referred to in art. 22 of the Act of 16 December 2016. on the principles of state management.
Article 10b. [ Subsidiaries] Article Recipe 10a shall also apply to subsidiaries of the companies referred to in that provision, within the meaning of the Article. 4 § 1 item 4 of the Commercial Companies Code, with that of the members of the supervisory board of a subsidiary, representing in that company a company with the participation of a local government entity shall apply the provision of art accordingly. 19 of the Act of 16 December 2016. on the principles of state management, excluding the holding of a positive opinion of the Board for companies with the participation of the State Treasury and the state legal persons.
Article 12. [ Application of separate provisions] 1. The provisions of the Code of Commercial Companies and the provisions of the Civil Code shall apply to the contributions and the participation of shares and shares, subject to the provisions of the laws: o self-government of the municipal government, the district government, the local government, and the Commercialization and certain employee entitlements.
2. To dispose of shares and shares in the companies referred to in art. 9, the provisions of Article 4 shall apply mutatis mutandis. 11-16 of the Act of 16 December 2016. on the principles of state management.
3. Shares and shares in the companies referred to in art. 9, disposal of the chairman of the management board of the local government unit, and in the case of the municipality of wójt (mayor, president of the city), with the agreement to divest the shares belonging to the local government entity, expresses the body constituting that entity.
4. In single-member companies of local government units, the function of a meeting of shareholders (general assembly) is the executive bodies of these units of local government.
Article 13. [ Rules for use of public services] 1. The Company shall determine in the rules of procedure the use of public services provided by the company, as well as the obligations of the company to the recipients of services.
2. The Rules of Procedure referred to in paragraph 1. 1, and its amendments shall apply in the area of local government units after the approval of the executive bodies of these units.
Chapter 4
Conversion of municipal companies
Article 14. [ Transformation of the municipal company under the law] 1. Municipal enterprises, in relation to which the municipal council until 30 June 1997 has not decided to choose an organisational or legal form or to privatise them, with effect from 1 July 1997. the transformation into a single company of the municipality, by virtue of the law.
2. If the provisions of the Act do not provide otherwise, this company shall enter into all legal relations the entity of which was a municipal company, regardless of the legal nature of these relations.
Article 15. [ Stages of transformation of municipal companies] 1. Before the expiry of the time limits referred to in art. 14 para. 1, the mayor (mayor, president of the city) decides on the type of company, establishes its statutes (the founding act) and immediately submits an application to enter the company into merchant registry [ 1] .
2. The deletion of the municipal company from the register of state-owned enterprises shall take place from the office, after the registration of the company in the commercial register, with effect from 1 July 1997.
Article 16. [ Application of Commercial Code provisions] 1. The company resulting from the transformation of the communal enterprise shall apply the provisions Commercial Code [ 2] If the Act does not provide otherwise.
2. The company resulting from the transformation of the communal enterprise shall not apply art. 312 and 313 of the Commercial Code .
Article 17. [ The Management Board of the Municipality] 1. Gmina in the company referred to in art. 14, represents the mayor (mayor, president of the city).
2. The first board of directors of the company is appointed by the mayor (mayor, president of the city), with that to serve as President of the first management board of the company, the mayor (mayor, president of the city), with effect from 1 July 1997. the director of a transformed communal enterprise, unless he/she does not agree to the performance of this function.
3. In the absence of consent by the director of the transformed municipal company referred to in paragraph. 2, wójt (mayor, president of the city) appoints the management board of the company in full composition, together with its president.
Article 18. [ Supervisory Board of the transformed company] 1. In the company resulting from the transformation of the municipal company, the Supervisory Board operates.
2. The number of members of the supervisory board shall be defined by the statutes.
3. Employees of the company retain the right to choose:
1) two members of the supervisory board in the council of up to six members;
2) three members of the supervisory board in the council of seven to ten members;
3) four members of the supervisory board in the council of eleven or more members.
4. (repealed)
5. Members of the supervisory boards referred to in paragraph. 3, they shall be elected by direct and secret ballot, while respecting the principle of universality. The result of the elections is binding for the general assembly.
5a. The mode of selection of the members of the supervisory board by employees of the company may specify its statutes or rules of procedure adopted in the manner laid down in that statute.
6. The employee of the company, being a member of its supervisory board, the company may not, during the period of the term of the council or during the period of the year after the end of the term of office, terminate the employment relationship, except in the cases referred to in art. 52 Labour Code. At that time, the company cannot also change to the disadvantage of a worker's working conditions or pay.
Article 19. [ Employees transformed into a municipal company] 1. Employees transformed into a company of a municipal company shall be made by the law of the company's employees.
2. The company is responsible for the obligations arising from the employment relationship prior to the transformation of the company.
3. The application of the work of the Director of the Company and of the employees employed on the basis of appointment shall cease, by virtue of the law, from the date of removal of the municipal company from register of public undertakings [ 3] .
4. The employees referred to in paragraph 4. 3, shall be entitled to a payment of three months ' remuneration, calculated as a cash equivalent for holiday leave. This exercise shall not be granted in the case of employment in a company at a position equivalent to or higher.
Article 21. [ Exempt the application of the provisions of the Act on commercialisation and certain powers of employees] The provisions of the Act of 30 August 1996 are not applicable in the cases of transformation of a municipal company into a company. o commercialization and certain employee entitlements (Dz. U. of 2016 r. items 981, 1174 and 2260), unless the law provides otherwise.
Article 22. [ The transfer to the property company of the liquidated government of the financial establishment] 1. The body constituting the self-government entity may, by way of a resolution, decide to liquidate a local government budget plant to bind a joint stock company or a limited liability company by a transfer to cover the capital a company's contribution in the form of the property of the local government of the budget facility after its liquidation.
2. The remaining one after the liquidation of the local government may also be transferred to the local government unit of the limited partnership or limited joint-stock company referred to in Art. 14 para. 1 of the Act of 19 December 2008. o public-private partnership.
3. Actions related to the liquidation of the local government budget establishment for the purpose referred to in the paragraph. 1, execute the executive body of the local government unit.
Article 23. [ Assets of the company] 1. The components of the property of the local government of the financial establishment transformed into a company become the assets of the company.
2. The law of the management of the land of a self-government budget office converted into a company becomes the right of use of the perpetual company.
3. The company resulting from the conversion shall enter into all the rights and obligations connected with the activity of the local government budget establishment.
Chapter 5
Amendments to existing provisions and final provisions
Article 28. [ Entry into force] The Act enters into force after 14 days from the day of the announcement, with that provision art. 11 will enter into force three months after the day of the announcement.
[ 1] Currently the National Court Register, on the basis of art. 86 of the Act of 20 August 1997. o National Court Register (Journal of Laws of 2017 items 700), which entered into force on 1 January 2001.
[ 2] He lost power on the basis of art. 631 of the Act of 15 September 2000. -Code of Commercial Companies (Journal of Laws of 2016 items 1578; ost. zm.: Dz.U. z 2016 r. items 2260), which entered into force on 1 January 2001.
[ 3] Currently: National Court Register, on the basis of art. 86 of the Act of 20 August 1997. o National Court Register (Journal of Laws of 2017 items 700), which entered into force on 1 January 2001.
