Municipal legal person

Abstract

Municipalities often establish legal entities of the so-called third sector, most commonly non-profit organizations providing services of general interest (hereinafter referred to as „municipal non-profit organization“ or „non-profit organization“). The statutory authorization for their establishment is provided by § 4 para. l) of the Act of the National Council of the Slovak Republic No. 369/1990 Coll. on municipal establishment, as amended. The existence of municipal non-profit companies causes a number of legal issues. Despite their prevalence and application problems, legal doctrine and legal literature pay no attention to municipal legal entities of the third sector. The contribution is intended to eliminate this informational deficit. The aim is a thorough analysis of the relationship between the founder – the municipality – and the established legal entity of the third sector – a non-profit organisation. The author specifically processes the impact of the decision of the Board of Directors of a municipal non-profit organization on the merger on the legal status of the municipality as a founder. By the subsequent synthesis of knowledge in the conclusion, the paper clarifies the knowledge that is condictio sine qua non for the lawful functioning of municipal legal entities and the proper approach of their founders.