Conditions for the participation of investors in the privatization of state property and the reincorporation of state unitary enterprises into joint-stock companies
14.04.2017 | 11:10
In accordance with Article 1 of the Law of the Republic of Belarus "Concerning the privatization of state property and the reincorporation of state unitary enterprises into joint-stock companies" (No. 2103-XII of 19 January 1993, as amended of 16 July 2010):
- privatization of state property is the sale of privatization objects to the subjects of privatization in accordance with the procedure and on the conditions established by the Law;
- objects of state property privatization are enterprises considered as property complexes of state unitary enterprises, shares (stakes in the authorized funds of) of economic entities owned by the Republic of Belarus or its administrative and territorial units;
Cooperation with investors in the area of privatization is envisaged through selling:
- subjects of state property privatization are individuals, including self-employed entrepreneurs, foreign citizens and stateless persons, legal entities of the Republic of Belarus, with the exception of public organizations and business entities in which authorized funds the number of shares (ownership interest), owned by the Republic of Belarus and (or) its administrative and territorial units, exceeds 50%, foreign states and their administrative territorial units, international organizations, foreign legal entities and foreign organizations that are not legal entities.
- shares (stakes in authorized funds) at an auction;
- shares (stakes in authorized funds) on a bidding basis;
- enterprises as property complexes at an auction;
- enterprises as property complexes on a bidding basis;
- shares of a joint stock company based on the results of trust management
Apart from that, in line with Article 25 of the law on privatizing state property and converting state unitary enterprises into public joint-stock companies (OAO) in the course of converting state unitary enterprises into public joint-stock companies investors are free to act as the other founder (other than the state) in such OAOs, provided they make a monetary and/or non-monetary contributions to the charter fund.
The non-state founders are chosen by the privatization agency through a tender. Should a tender fail because only one application for participation has been submitted, the privatization agency shall choose the non-state founder through direct negotiations with the only participant of the tender.
The procedure for arranging the tender to choose the non-state founder and conditions for arranging these tenders are stipulated by the Council of Ministers’ resolution No.1929 of 31 December 2010. The resolution stipulates measures for implementing the law on amending and expanding several laws and invalidating some legislative acts or their individual clauses, which regulate the privatization of state property.
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