LAW ON PRIVATIZATION OF STATE CAPITAL OF ENTERPRISES

 

 

 

 

Article 1

 

            This law regulates the records, the administration, the method and the procedure of privatization of state capital of enterprises.

 

 

Article 2

 

            State capital, within the meaning of this law, refers to (a) the stake (long-term investments) of the Republic of Macedonia in the value of the enterprises, determined in accordance with the Law on Transformation of Enterprises with Social Capital ("Official Gazette of the Republic of Macedonia" No.38/93 and 48/93), the Law on Transformation of Enterprises and Cooperatives with Social Capital Using Agricultural Land ("Official Gazette of the Republic of Macedonia" No.19/96) and the Law on Regulating the Relations in connection with the Servicing of Loans from International Financial Organizations (”Official Gazette of the Republic of Macedonia", No. 48/94), (b) the investments of the Republic of Macedonia in the value of the enterprises  pursuant to the provisiions of the Law on Restructuring some of the Enterprises Showing Losses in their Business Operations ("Official Gazette of the Republic of Macedonia" No. 2/95 and 65/95), Law on Rehabilitation and Restructuring of a portion of the Banks in the Republic of Macedonia ("Official Gazette of the Republic of Macedonia", No. 14/95), and (c) the capital obtained on other bases in accordance with the law.

 

 

Article 3

 

            For the value of the state capital, enterprises issues ordinary shares, that is, stake certificates to the Republic of Macedonia.

 

 


Article 4

 

            The records of the state capital of the enterprises are maintained by the Ministry of Finance.

            The method and procedure for the maintenance of records of state capital are regulated by the Government of the Republic of Macedonia.

 

 

Article 5

 

            State capital is managed by the Government of the Republic of Macedonia.

            The Government appoints members within the organs of management of the enterprises with state capital, in accordance with the law.

 

 

Article 6

 

            The privatization of state capital of enterprises is decided upon by the Government of the Republic of Macedonia, on a case by case basis.

            Privatization is undertaken in accordance with a Programme, which shall be adopted by the Government of the Republic of Macedonia for a period of 6 months.

 

 

Article 7

 

            State capital can be privatized together with social capital, or on a separate basis.

 

Article 8

 

            In the case of state capital being privatized together with social capital, the provisions of the Law on Transformation of Enterprises with Social Capital  apply, respectively, for the purpose of offering a majority (controlling) package of shares, that is stakes.

 

Article 9

 

            State capital can be privatized on a separate basis, by way of:

a) public announcement of collecting bids (hereinafter "public announcement") and

b) stock exchange market.

            The procedure of privatization through a public announncement, as well as through the stock exchange market, is administered by the Agency for Transformation of Enterprises with Social Capital and the Bank Rehabilitation Agency.

 

 

Article 10

 

            In the case of state capital being privatized through a public announcement or the stock exchange market, the initial price of the shares, that is, stakes, represents their face value.

            The face value from Paragraph 1 of this Article is determined on basis of the appraised value of the capital.

            In the event of a valuation of the capital being nonexistent, the face value is determined on basis of the book value of the capital.

 

Article 11

 

            The shares and stakes in the state capital can be sold in installments, over a period not longer than five years.

 

Article 12

 

            The method and procedure for the sale of state capital and the payment of shares, that is stakes, are regulated in detail by the Government of the Republic of Macedonia.

 

Article 13

 

            In the sales of state capital, payment may be effected in denars, in foreign currency saving deposits of the citizens, as well as in securities issued by the Republic of Macedonia.

 

Article 14

 

            In the sales of state capital, the following discounts are allowed:

– for prompt cash payment in denars, 60%,

- for prompt payment in foreign currency saving deposits of the citizens, 10%

- for payment in installments over a period of up to one year, 30% and

- for payment in installments over a period of up to years, 20%.

 

 

Article 15

 

            Shares and stakes may be purchased by domestic and foreign persons, as well as by legal and physical persons.

 

 

Article 16

 

            The Agreements for the sale of shares and stakes, on behalf of the Republic of Macedonia, are concluded by the Minister of Finance.

 

Article 17

 

Proceeeds of the sales of state capital represent revenues in the Budget of the Republic of Macedonia.

 

Article 18

 

            Where state capital has been identified in an enterprise which has completed the procedure of transformation of social capital, such enterprise is obliged to issue shares, that is stake certificates to the Republic of Macedonia, for the value of the state capital, within 60 days from the date this law enters into force.  

 

            Enterprises undergoing the procedure of transformation are obliged to issue shares, that is stake certificates to the Republic of Macedonia, for the value of the state capital identified during the transformation procedure, within 30 days after the completion of the transformation procedure.

 

Article 19

 

            The Ministry of Finance supervises the enforcement of this law.

 

Article 20

 

            Should an enterprise fail to issue shares, that is stake certificates to the Republic of Macedonia (Article 18), said enterprise will be fined for business violation with 100 to 200 monthly salaries.

            The responsible employee in the enterprise will be also be fined with five to eight monthly salaries for the business violation from Paragraph 1 of this Article.

 

 

Article 21

 

            The regulations referred to in Articles 4 and 12 of this Law will be passed within 60 days of the date this law enters into force.

Article 22

 

            This Law enters into force on the eighth day following the date of publication in the "Official Gazette of the Republic of Macedonia".


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