Reference no.:
Official Gazette RS, No. 44/00, Official Gazette RS, No. 40/01 and OdlUS X, 77 | 19.04.2001
Act on Ownership Transformation of Insurance Companies (Official Gazette RS, No. 12/2000) (ZLPZ)
Operative provisions:
The Act on Ownership Transformation of Insurance Companies (Official Gazette RS, No. 12/2000) is annulled.
In 1990, on the basis of the Act on the Foundations of the System of Property and Personal Insurance (hereinafter ZTSPOZ90), in the case of insurance companies only the transformation from previous insurance societies into joint stock companies, as one of the legal-organizational forms typical of a private-property system, was carried out. However, what was not carried out was the second phase of the operation essential for ownership transformation, that is the ownership transformation of social capital thus determining the rightful persons entitled to a share in the basic capital of the insurance company that represents the social capital of the previous insurance society. This was prevented by the explicit provision of the Act, which announced statute to regulate this question. Thus the special statute on the ownership transformation of insurance companies is necessary. It would need to respect the regulation in ZTSPOZ90 (Arts. 123 and 123.a): it would need to make possible the transformation of the "non-specified social capital" in an insurance company into contributions to the capital of the company by known (specified) founders and insured persons; only in that part in which the title holder to ownership cannot be found in such a manner, statute could determined him or her. By overlooking their "anticipated rights" to the acquisition of the ownership right the Act violated Art. 33 of the Constitution. Art. 2 of the Constitution, that is the principle of trust in the law, was also violated since the petitioners substantially could expect that the Act would deprived them of the rights guaranteed by Art. 123 of ZTSPOZ90 without a reason based on the public interest.

ZTSPOZ90 became part of the legal system of the Republic of Slovenia. The petitioners thus referred, on well-founded grounds, to the fact that they relied on its provisions in connection with the ownership transformation of insurance societies. In particular they relied on Art. 1232 and 3 of this Act which recognized them certain property entitlements in insurance companies. Considering Art. 123.a of the mentioned Act they anticipated that the announced future Act would regulate the ownership transformation of social capital in insurance companies also respecting the property entitlements already envisaged in ZTSPOZ90. There is no legal certainty if it is impossible to trust the valid law and rely on the valid regulations.

A consequence of the non-adoption of the announced Act cannot be the deprivation of the already recognized rights (entitlements). In particular the long period of adopting such act cannot be by itself a substantiated reason for something like this.

Regarding the asserted violations of Art. 14.2 of the Constitution, for the legislature in a similar case of banks allegedly respected the equal rights of the previous founders of the banks, it is necessary to consider that in spite of a certain similarity the matter did not concern the same organizations. Thus the referring to the principle of equality could be substantiated only if the matter really concerns the equal factual and legal situation.
Principle of equality before the law.
Principle of the protection of trust in the law.
Principles of a State governed by the rule of law.
Ownership, social property.
Ownership, ownership transformation of insurance companies.
Constitutional Court, temporary injunction, statute.
Vested rights.
Anticipated rights.
Right to private property and inheritance.
Public interest.
Principle of legal certainty.
Insurance activities, management of insurance companies.
Constitutional Court, review of a procedure of the adoption of a general act.
Concurring opinion of a Constitutional Court judge.
Legal basis:
Constitution, Arts. 2, 14.2, 33, 89, 155
Constitutional Court Act (ZUstS), Art. 43
Document in PDF:
Type of procedure:
review of constitutionality and legality of regulations and other general acts
Type of act:
LEK Company Factory of Pharmaceutical and Chemical Products, Inc., Ljubljana
Date of application:
Date of decision:
Type of decision adopted:
Outcome of proceedings:
annulment or annulment ab initio