LAW OF THE REPUBLIC OF BELARUS of 19 January 1993
"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.
SECTION 1.
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.
Article 2.
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.
Article 3.
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 privatized.
Article 4.
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 property.
Article 5.
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.
SECTION 2.
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.
Article 7.
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.
Article 8.
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.
Article 9.
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.
SECTION 3.
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.
Article 11.
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".
Article 12.
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 on privatization.
SECTION 4.
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.
Article 15.
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.
Article 16.
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.
Article 17.
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.
Article 18.
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.
Article 19.
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.
Article 20.
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.
Article 21.
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.
Article 22.
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.
SECTION 5.
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.
Article 24.
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.
SECTION 6.
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 offices.
Article 26.
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.
HOME ll CATALOG ll HISTORY ll CATEGORY ll INVEST ll CATEGORY l

 

Please visit our sponsors.
Click Here to Visit our Sponsor

Webmasters, need money? Click here!
Click Here to become a ValueClick Member Site