Significance of communal economy and legal aspects of executing it by territorial self-government units

Abstract

This paper, which refers to the legal aspects of executing a communal economy, contains the expla-nation of a legal meaning of “communal economy” term. The above-mentioned clarification was taken from Article 1 item 2 of the Communal Economy Act of 20 December 1996. The paper also describes the specific legal solutions, set out in this and other law acts. The rules contained therein must be observed by the territorial self-government units when executing the municipal economy. Particularly, the article presents the legal forms of executing the communal economy, which are mentioned in Article 2 of the Communal Economy Act. This regulation indicates that there are no-tably two such forms: a communal budgetary institution and trade companies. In this context, one should also mention that Article 22 item 1 of the Communal Economy Act states particularly about the possibility of liquidation of the previously mentioned institution in order to set up a special en-tity, which can be a joint stock company or a limited liability company.