Belarus expands the list of operations in asset management of public corporations, which can only be conducted in consultation with the Head of State. Additions and amendments to the corresponding decree on matters of property disposition in communal ownership were introduced by President of Belarus Alexander Lukashenko on March 14.
As reported in the Administration of the President, the decree concerns the alienation of buildings, structures, isolation facilities, shares, pledge of shares, as well as the second and subsequent issues of JSC shares, processing agricultural products, the statutory funds of which have shares in the communal property. According to the decree, the draft decisions of the local executive and administrative bodies on these matters shall be harmonized with the president. Preliminary draft decision must undergo the approval procedure in the Ministry of Economy, State Property Committee and other state bodies in cases stipulated by law.
Under the decree, alienation will be carried out only in consultation with the president, including the introduction of the statutory fund of private entities, a pledge of communal property shares (shares in statutory funds) of business entities, listed to operate strategically important sectors of the economy or important government needs, as approved by the Council of Ministers.
The Decree of January 1, 2011 also provides regional executive committees and Minsk Executive Committee with pre-emptive right to buy shares of JSC, processing agricultural products, acquired by citizens of Belarus from the state on concessional terms (20% lower than nominal value) in exchange for «Property» nominal vouchers and transferred to the agricultural producers at a nominal cost.
The decree stipulates that the shareholder has the right to sell shares to a third party at a price not lower than stated to the committee, if within 90 calendar days from receipt of the shareholder’s notice by Minsk city executive committee or voblast executive committee with intention to sell his shares, or if these shares are not purchased by the executive committee or Minsk City Executive Committee at a set price from the date of the application’s placement to sell shares at the Belarusian Currency and Stock Exchange.
As explained in the Administration of the President, it will allow the local executive and administrative bodies to be the first to acquire shares of such JSC and, thus, increase the share of community property in their statutory funds. In turn, this will give them the opportunity to influence decisions, taken by management of JSC.
