legal standards by a Czechoslovakian television company.

The Regional Commercial Court in Prague has announced the first hearing of a motion calling for the dissolution of the Ceska Nezavisla, which has links to a Bermuda-based company.

Televizni Spolecnost (CNTS) television service company is owned by American cosmetics magnate Ronald Lauder.

A former service organisation of the Czech commercial television station Nova, CNTS is owned by cosmetic tycoon Lauder's Bermuda-based CME.

Lawyers for Dr. Vladimir Zelezny, Director General of the Czech TV Nova and Legal Executive of CET 21, filed motion for the dissolution of CNTS in August.

CET 21 has a minority shareholding in CNTS.

The August 17 motion said the action was based on "four mutually independent legal opinions provided by experts from the Law Faculty Charles University, Prague''.

Dr. Zelezny alleged that in 1994 Ronald Lauder's Bermudian CME Company increased the registered capital of CNTS in a manner that "failed to comply with Czech or Continental legal standards.

"According to documents lodged with the Regional Commercial Court, CET 21 alleges that CME paid more than 70 percent (CZK 126 million out of CZK 173 million) of the subscribed non-monetary contribution in a manner which CET 21 lawyers said did not comply with Czech law.'' Until 1999, CNTS was a service provider to CET 21, which ran the broadcasting of TV Nova in the Czech Republic. CET 21 terminated its co-operation with CNTS/CME in August 1999 and began broadcasting through another supplier.

Company `did not comply with standards' Ronald Lauder reportedly has claimed that termination of the contract harmed his investment and is seeking damages from the Czech Republic based on a treaty with the United States that protects investments.

But CET 21's legal experts counter-claim that the treaty on mutual support and protection of investments would not apply in this case.