Legal Aspects of Joint Ventures in Eastern Europe by Dennis Campbell

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By Dennis Campbell

DENNIS CAMPBELL AND MARK MILLER creation in the final decade, there was major growth in either the frequency and volume of direct international funding by way of Western international locations and multinational 1 businesses (MNC's) within the forni of joint ventures in jap Europe. those joint ventures, in addition to different kinds of mutual-cooperation alternate preparations, signify confident facts of the expanding enthusiasm in the direction of East-West trans­ activities now chanced on on each side of the eu frontier. The spirit with which Western governments and enterprise pursuits have sought to extend involvement within the East ecu industry has been good documented. although, there was particularly little awareness paid to the very important inner adjustments that have take place in the foreign-trade rules of the jap ecu coun­ attempts and that have served to house the expansion of alternate with the West. This dramatic bring up in direct overseas funding within the kind of joint ventures effects basically from the passage of allowing laws in a few of the East ecu states, laws which has facilitated and attracted company make investments­ ment from the West. hence, it really is opportune to ascertain and evaluate the coverage reforms and amendments which were enacted in japanese Europe and the Western responses thereto. As a initial topic, the time period 'joint venture', in addition to different mechanisms for international funding as used the following, will be outlined and distinguished.

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The Act Concerning the Joint Stock Company does not expressly provide for 45 PAVEL KALENSKY the very special case of a joint-stock company with foreign participation as to the limitation of such participation to a certain proportion. It must be emphasized, however, that the establishment of a joint-stock company requires the consent of the State, the approval of the articles of association, and the entry of the joint-stock company into the Commercial Register. All three conditions just quoted must be fulfilled simultaneously, which means that the lack of one of the conditions required may not be replaced by the fulfillment of another one.

3) In the unitary planned economy of the Czechoslovak Socialist Republic, a uniform system of socialist public ownership, a single currency, a uniform economic policy, a uniform system of management and a uniform policy and placement of the labor force shall be asserted. '(4) ... ' , As to the division of jurisdiction (competence) between the federation and the republics, it must be said that, according to Article 7 of the Act concerning the Czechoslovak Federation, the Czechoslovak Socialist Republic shall have exclusive jurisdiction over foreign policy, conclusion of international treaties, representation of the Czechoslovak Socialist Republic in internal relations (Article 7, Paragraph I, lit.

The Constitution of Czechoslovak Socialist Republic now in force, adopted in 1960 after all basic targets of the transition to socialism had been fulfilled, does not contain any explicit provision on the state monopoly of foreign trade. However, it must be emphasized that the reason for this silence must be found in Article 7, Paragraphs I and 2 of the Constitution, stating that the economic foundation of Czechoslovak Socialist Republic is the socialist economic system, which excludes every form of exploitation of man by man, in which all means of production are socially owned, and the entire national economy is directed by plan.

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