LAW OF THE REPUBLIC OF BELARUS of 19
"ON DESTATIZATION AND PRIVATIZATION OF STATE PROPERTY
IN THE REPUBLIC OF BELARUS"
The present Law determines a legal framework for destatization and
privatization as well as the rules and procedures for privatizing facilities
and establishments owned by the state (republican and communal property).
The Law is aimed at creating conditions for the development of an efficient
socially-oriented market economy, ensuring a real multiplicity of forms
of ownership and carrying out state-monopoly policies.
GENERAL PROVISIONS Article 1.
Concept of destatization and privatization Destatization shall mean
a partial or full transfer (including through privatization) of the functions
of direct management of economic subjects from the state to physical or
legal persons. Destatization shall be executed in conformity with the legislation
of the Republic of Belarus and the State Programme of Privatization. Privatization
shall mean acquisition by physical or legal persons of property rights
for facilities and establishments begoning to the state. As a result of
privatization the state shall lose partially or fully the right of possession,
use or disposal of state property, whereas state bodies shall lose the
right for direct management of this property. Privatization shall be implemented
through a gratuitous transfer or sale of state property.
Legislation of the Republic of Belarus on privatization Privatization
of state property in the Republic of Belarus shall be regulated by the
present Law and other laws of the Republic of Belarus. Privatization of
state property located outside the Republic of Belarus shall be regulated
by the present Law, unless otherwise stipulated by international treaties
and agreements. Particular aspects of the acquisition of state property
by foreign physical and legal persons as well as by legal persons with
the participation of foreign investors shall be determined by the legislation
of the Republic of Belarus on foreign investment. Particular aspects of
the privatization of land shall be regulated by the legislation of the
Republic of Belarus on land. Particular aspects of privatization of state-owned
dwelling facilities shall be regulated by the Law of the Republic of Belarus
"On Privatization of Housing Facilities in the Republic of Belarus"
and other laws of the Republic of Belarus.
Objects of privatization Objects of privatization shall be the following
facilities and establishments owned by the state: dwelling facilities,
enterprises, shops, production facilities, sections and other subdivisions
of these enterprises treated as independent enterprises, equipment, buildings,
installations, licences, patents, other material and non-material assets
of enterprises and of their subdivisions; shares of the state and local
Soviets of People's Deputies in the capital of joint-stock companies; shares
owned by privatized enterprises in the capital of other joint-stock companies,
as well as associations, concerns, unions and other amalgamations and enterprises.
Enterprises (amalgamations), organizations and types of property the list
of which is approved by the Supreme Soviet of the Republic of Belarus on
the basis of propositions of the Council of Ministers of the Republic of
Belarus shall not liable to destatization and privatization. In exceptional
cases so as to protect the interests of the Republic of Belarus and its
security, the Presidium of the Supreme Soviet of the Republic of Belarus
shall be given the right to add the list of facilities which may not be
Subjects of privatization Subjects which acquire state-owned property
during the process of privatization may be: nationals of the Republic of
Belarus; legal persons of the Republic of Belarus whose activities are
based on non-state forms of ownership; labour collectives of state-owned
enterprises which have formed either an organization of lessees or an economic
company or partnership, being an independent legal person in conformity
with the current legislation of the Republic of Belarus; foreign investors;
stateless persons. Legal persons whose activities are based on non-state
forms of ownership be persons having more than 75 per cent of ownership
capital formed by direct or indirect contributions which are not state-owned
Representatives of subjects of privatization Subjects of privatization
can operate through their representatives ( authorized persons) in conformity
with the legislation of the Republic of Belarus.
BASIC PRINCIPLES, PROGRAMMES AND BODIES OF PRIVATIZATION Article 6.
Basic principles of privatization Basic principles for carrying out
of privatization shall be: combination of paid and gratuitous methods of
privatization; the right of each national of the Republic of Belarus to
part of gratuitously transferred state property; differentiation of methods,
forms and procedures of privatization; discrimination of competence among
bodies of state power and management of different levels related to the
carrying out of privatization; provision of certain social guarantees to
members of labour collectives of enterprises being privatized; supervision
of the state over the privatization process; ensurance of public openness
for the privatization process; gradual and stepped character of the process;
observance of laws.
Realization of basic principles of privatization The basic principles
of privatization shall be realized through the State Programme on Privatization
which determines: objectives, tasks and time of privatization steps; priorities
and restrictions; finance sources for carrying out privation operations
and purposes for spending the resources; tasks of bodies of state power
and management; other directions of the privatization process. The State
Programme on Privatization shall be approved by the Supreme Soviet of the
Republic of Belarus on proposition of the Council of Ministers of the Republic
of Belarus. Supervision over the execution of the State Programme on Privatization
shall be performed by the Chamber of Control of the Republic of Belarus
and other authorized bodies.
Privatization programmes Programmes for privatization of state facilities
being a communal property shall be approved by local Soviets of People's
Deputies. On the basis of these programmes, privatization bodies shall
compile lists of state facilities liable to privatization.
Privatization bodies and their functions When the republican property
is being privatized, interests of the state as a property owner shall be
represented and protected by the Committee on the Management of State Property
of the Council of Ministers of the Republic of Belarus, whereas when communal
facilities are being privatized - by privatization bodies of local Soviet's
of People's De puties. Privatization bodies shall: develop privatization
programmes; organize and supervise the realization of the above programmes;
control privatization processes. In case of violation of laws of the Republic
of Belarus on privatization, legal steps shall be taken to revoke illegal
decisions and make guilty officials responsible; set up privatization commissions;
take decision on privatization; carry out the necessary transformations
of organizational and legal forms of state-owned enterprise liable to privatization;
possess ownership certificates for state-owned enterprises and property
shares in capital of state, share-holding and other economic companies
according to the procedure established by the legislation of the Republic
of Belarus; act as founders of share-holding and other economic companies;
receive dividends, incomes on shares and receipts from destatization and
privatization of state-owned enterprises and prepare propositions on utilization
in conformity with the legislation of the Republic of Belarus; exchange
shares of state-owned enterprises of the Republic of Belarus for shares
of legal persons of other states and enterprises with non-state forms of
ownership; organize and carry out contests and auctions for selling state-owned
facilities; set up (liquidate) within their structures relevant funds for
the purpose of possessing and disposing of state property; perform other
functions necessary for privatization.
GRATUITOUS TRANSFER OF PART OF STATE PROPERTY Article 10.
Purposes of gratuitous transfer of state property Purpose of a gratuitous
transfer of part of state property only to nationals of the Republic of
Belarus shall be the ensurance of social equality during the privatization
process at the stage of transition to a market economy.
Distribution of state property transferred gratuitously The State represented
by the Supreme Soviet of the Republic of Belarus shall determine (for the
period of gratuitous privatization) the share of state property to be transferred
to nationals of the Republic of Belarus gratuitously during the privatization
process. The part of state property transferred gratuitously to each national
shall be determined by two quotas: the housing quota on the basis of the
Law of the Republic of Belarus "On Privatization of Housing Resources
in the Republic of Belarus" and the present Law; the quota for the
property of state-owned enterprises on the basis of the present Law and
the Law of the Republic of Belarus "On Personal Privatization Vouchers
of the Republic of Belarus". A national shall have the right to pool
the quotes so as to realize them in accordance with the present Law. In
these cases quotas shall be pooled on the basis of conversions ratios established
by the Council of Ministers of the Republic of Belarus so as to guarantee
an equivalent conversion of the above quotas. To realize the right for
the use of the quotas, nationals of the Republic of Belarus shall be given
personal privatization vouchers "Housing Facilities" and "Property"
in conformity with the Law of the Republic of Belarus "On Personal
Privatization Vouchers of the Republic of Belarus".
Use of quotas Quotas shall be used by the nationals of the Republic
of Belarus first of all according to their purpose. The State shall stimulate
the use of quotas according to their purpose on the basis of the legislation
of the Republic of Belarus.
Quotas shall have not been used in the process of privatization shall
be Article 13.
Use of the housing quota The housing quota shall be used to privatize
dwelling rooms in houses of state and communal housing resources. If it
is not possible to use the housing quota partially or fully according to
its purpose, it may be used to privatize property of state-owned enterprises
in conformity with the present Law and other laws of the Republic of Belarus
ORGANIZATION AND PROCEDURES FOR PRIVATIZATION OF PROPERTY OF STATE-OWNED
FACILITIES Article 14.
Proposition for privatization State-owned facilities planned for privatization
shall be included into the list of privatizable facilities both at the
initiative of privatization bodies and on proposition of labour collectives,
physical and legal persons. A proposition shall include: the name of facilities
proposed for privatization; time of privatization; preliminary assessment
of facilities' cost; sources of resources for buying out facilities; planned
utilization of facilities after privatization; a list of authorities of
persons which represent interests of the privatization subjects. Legal
persons shall additionally submit a notarized copy of their statute. Propositions
of labour collective on inclusion of the state-owned enterprise into the
list of privatization facilities shall be submitted on a basis of a decision,
taken by the supreme self-management body of the labour collective, by
persons duly authorized by the said decision. A proposition on privatization
of state facilities shall be submitted to the privatization body at the
place the privatization facilities are located.
Procedures for consideration of a proposition A proposition on privatization
of state property shall be considered by the relevant privatization body
within one month since the day the proposition was submitted. A decision
taken by the privatization body shall be given in writing to the subject
which submitted a privatization proposition. A decision shall contain a
consent, time period and conditions for privatization or a motivated refusal.
A refusal to accept a privatization proposition may be given only in case
of established restrictions or a ban of privatization. A subject of privatization
may appeal to a court of justice against a refusal given by a privatization
body to accept a proposition.
Privatization commission In case of a positive privatization decision,
the relevant privatization body shall set up a privatization commission
which shall organize the fulfillment of work connected with privatization,
and set up a time period for preparing a conclusion on privatization opportunities
for given facilities. This time period may not exceed six month since the
day a proposition was submitted. A commission shall include representatives
of privatization bodies, tax inspection, administrative bodies and representatives
of the labour collective (in case an enterprise is being privatized by
its labour collective). The commission shall: determine cost of facilities;
in case of a state-owned enterprise is being privatized: reveal its debtors
and creditors and take measures so as to settle accounts with them; take
a decisions on conditions for including social infrastructure facilities
maintained by the enterprise into the property to be privatized; make a
conclusion on privatization opportunities for the facilities; learn any
documents related to activities of the facilities; if necessary, require
written explanations of officials and specialists; perform revision and
stock-taking. Instructions given by the commission shall be compulsory
for managerial bodies of the facilities. From the time of its formation
the commission shall have the right to revoke any decisions taken by the
managerial bodies of facilities being privatized if such decisions involve
changes in the composition and assessment of their property. Disputes arising
from such actions shall be settled in a court of justice or an economic
court. The commission shall be entitled to attract specialists, experts
and other organizations for cooperation. A chairman of a commission shall
be a representative of privatization bodies. The commission shall give
its conclusion on privatization of facilities. Members of the commission
shall bear personal responsibility for objectivity of materials prepared
for taking a decision on privatization of facilities. The commission shall
terminate its work when facilities are excluded from the privatization
list or upon completion of privatization.
Taking a decision on privatization Proceeding from the commission's
conclusion the privatization body shall: take a final decision on privatization
of state facilities; make changes in the list of facilities planned for
privatization; take a decision on a cost of privatization facilities, final
time and conditions of sale (contest); prepare information to be published
about each facility proposed for privatization.
Information about privatization Following approval of the privatization
programme, a list of facilities proposed for privatization shall be published,
not later than in a month time, in a special republican information bulletin
and local press media. The list shall include: the full and shortened name
of facilities; their address; the body carrying out privatization of the
given facilities and its location; planned privatization time periods;
time period for making claims to the facilities being privatized; cost
of the property; a list of fixed assets groups; the area of the plot of
land features of constructions located on the plot of land, their lease
and sale conditions; initiated investment projects, their estimated cost
and expenditures made in respect of them; sale conditions' including those
related to the future use of facilities. When state-owned enterprises are
being privatized, the following data shall be published additionally: the
number of workers and their professional qualifications; financial state
and opportunities for repayment of receivables; shares (parts) owned by
the enterprise in assets of other enterprises; non-material values (patents,
trade marks and so on); commitments of the enterprise (trade, budgetary,
credit); balance of the enterprise for the previous year; enlarged range
of manufactured products; other data specified by the Committee on the
Management of State Property under the Council of Ministers of the Republic
of Belarus. The relevant privatization body shall publish the information
and bear responsibility for the adequacy of the published data. Persons
who wish to acquire facilities being privatized must submit, within one
month from the day of publication, an application to the privatization
body which has published the given information. Persons, who have not submitted
an application in due time, shall not be allowed to take part in the privatization
of the given facilities.
Choosing conditions and rules for the sale of facilities (contest,
auction) The privatization body shall be free to choose conditions and
rules for the sale of facilities (contest, auction). In this case the privatization
body may not prevent subjects of privatization which submitted in due time
an application for the acquisition of the facilities from the participation
in the contest or auction. To allow privatization of facilities represented
by communal property by foreign legal and physical persons or stateless
persons, privatization bodies of local Soviets of People's Deputies shall
be obliged to obtain a permission of the Committee on the Management of
State Property under the Council of Ministers of the Republic of Belarus.
Payment for privatized facilities State facilities being privatized
may be paid for either by a single payment or by instalments with due account
of inflation and as stipulated by the contract. Pecuniary resources as
well as personal privatization vouchers may be used to pay for acquired
state facilities. When privatized state facilities are being acquired (for
the period of gratuitous privatization) with any conditions of privatization
(buy-out, auction, contest), 50 per cent of the estimated cost of privatized
facilities shall be paid with personal privatization vouchers at their
nominal cost with due account of inflation.
Procedure for making privatization transactions A transaction concluded
for the acquisition of privatized facilities shall be confirmed by a contract
between a privatization body and a new proprietor (subject of privatization)
in conformity with the legislation of the Republic of Belarus. A contract
shall specify: procedures and time periods for the transfer of facilities;
a form and time of payment; mutual commitments of the parties for the future
utilization of facilities; other conditions established by agreement of
the parties, unless otherwise stipulated by the legislation of the Republic
of Belarus. Social infrastructure facilities which have been maintained
by a state-owned enterprise being privatized may be transferred to the
new proprietor of this enterprise free of charge without the right to dispose
of the facilities, provided the new proprietor guarantees that the facilities
should be used as before according to a contract concluded wit h a body
which manages the pertinent state property. This contract after being signed
must be registered within 10 days by the relevant privatization body.
Arrangement of the right of ownership The right of possession and use
shall be transferred to the new proprietor after the contract has been
registered. The right for disposal of facilities shall come into force
from the time a certificate is issued. A certificate of the right of ownership
shall be issued by the Committee on the Management of State Property under
the Council of Ministers of the Republic of Belarus when republican property
facilities are being privatized and by the executive committee of the local
Soviet of People's Deputies for facilities owned by territory administrative
units within one month after making payments in accordance with the contract
and submission of the necessary documents. A privatized enterprise shall
be registered in accordance with the legislation of the Republic of Belarus
as a newly formed enterprise. The name of the enterprise shall not include
terms which show the state and departmental affiliation.
GUARANTEES AND RESPONSIBILITIES Article 23.
Guarantees given to workers of privatized state-owned enterprises Legal
persons formed by labour collectives which participate in the privatization
of their enterprise shall purchase it at a price which is 20 per cent lower
than the amount to be paid with money. If privatized enterprise is acquired
by a legal or physical person, then the new proprietor shall be obliged,
within the time period specified by the contract and as required by members
of the labour collective, to buy out at the nominal cost and with due account
of inflation their personal privatization vouchers received free of charge
or offer t hem the pertinent share in the property of the enterprise. Preparation
for and carrying out of privatization may not be a ground to suspend operation
of the enterprise. The state shall bear responsibility for the commitments
arising from labour relations until the privatization is completed. These
commitments shall be transferred to the new proprietor from the time the
privatization is completed. After a state-owned enterprise has been privatized,
members of its labour collective shall obtain the right to participate
in the management of the enterprise in accordance with the share of property
owned by them.
Guarantees to the owner of privatized facilities The state shall guarantee
the protection of the rights of the owner of privatized facilities which
accrue from the contract on the acquisition of the privatized state facilities.
The owner of privatized state facilities shall not bear responsibility
for the debts, claims for which have not been presented in the time periods
set by the privatization body and published in accordance with Article
18 of the present Law.
FINAL PROVISIONS Article 25.
Invalidity of privatization transactions Transactions on privatization
of state facilities concluded with violation of the present Law after it
has been put into force be recognized invalid from the time of their conclusion.
Disputes related to invalidation of transactions shall be considered in
court by claims presented by concerned parties, privatization bodies, procurator's
esponsibility for violation of the present Law Persons who
have facilitated by their illegal actions the conclusion of transactions
in violation of the present Law shall bear criminal and administrative
responsibility in conformity with the legislation of the Republic of Belarus.
Persons found guilty of committing such actions shall compensate persons
who sustained losses for their full amount.
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