The production of different goods or different branches of production develop unequally rapidly: some reach a high technical and technological level, while others may, for various reasons, lag behind and be at a lower level. Different levels of productive forces may correspond to different forms of ownership, even in the same country. For example, such an industry as communication requires huge funds for its creation, complex and well-coordinated collective work. Such a generalization of production corresponds to state ownership. But in hairdressing, where there are other productive forces, there is no need for this form.
Different forms of ownership define economic systems with a variety of property. However, usually one of them becomes the predominant, leading one. And there’s nothing unnatural about that. What is important is that there is no (unjustified economically and socially) hypertrophy of one or another form of ownership. Otherwise, the necessary correspondences between the productive forces and the relations of production are violated. This becomes an inhibiting factor that does not allow further development, and leads to stagnation in the economy and other negative phenomena. Then comes the need for transformation, change of ownership.
The Civil Code does not solve the issues of denationalization and privatization of state property. It provides only that denationalization and privatization are carried out in the manner prescribed by law, and establishes the relationship between the provisions of the Civil Code and the legislation on denationalization and privatization. Priority is given to this legislation. The provisions of the Civil Code regulating the procedure for the acquisition and termination of the right of ownership in the process of denationalization and privatization are applied unless otherwise provided by the legislation on denationalization and privatization, i.e. subsidiary. The Code also provides that state property of republican and communication property is subject to denationalization.
There is extensive legislation on denationalization and privatization. The most important acts of such legislation are the following laws: of January 19, 1993 “On denationalization and privatization of state property in the Republic of Belarus”; april 16, 1992 “On the privatization of the housing stock in the Republic of Belarus”; july 6, 1993 “On registered privatization checks of the Republic of Belarus”.
The Law “On denationalization and privatization of state property in the Republic of Belarus” defined the concepts of the privatization process. Denationalization is understood as the transfer from the state to legal entities and individuals partially or completely (including through privatization) of the management functions of economic entities. Privatization is the acquisition by individuals and legal entities of ownership of objects owned by the state.
As a result of privatization, the state completely or partially loses the rights of possession, use and disposal of state property, and state bodies lose the rights of direct management of it.
The objects of privatization are:
public and public housing; state-owned enterprises, institutions, organizations, structural units of associations and structural subdivisions of enterprises (hereinafter referred to as enterprises); state property leased; state property in the form of equipment, buildings, other tangible and intangible assets of liquidated (liquidated) enterprises; shares (shares, shares) of the state and administrative-territorial entities in the property of business entities.
Entities acquiring state property in the process of privatization include:
citizens of the Republic of Belarus; legal entities of the Republic of Belarus, whose activities are based on non-state forms of ownership; legal entities of the Republic of Belarus established by at least 50 percent of the members of labor collectives of privatized enterprises; foreign investors; stateless persons.
Legal entities whose activities are based on non-state forms of ownership are persons whose more than 50% of the authorized capital is formed by direct or indirect contributions that are not related to state property.
The main principles of privatization include:
a combination of reimbursable and gratuitous privatization methods; the right of every citizen of the Republic of Belarus to a part of the gratuitous transferable state property; differentiation of privatization methods, forms and procedures; delimitation of competence in the implementation of privatization between public authorities and management at different levels; provision of certain social guarantees to members of labor collectives of privatized enterprises; control over the implementation of privatization by the state; ensuring the transparency of the privatization process; gradualism and phasing; compliance with the rule of law.
However, property transformations are socially justified only when they are economically efficient, i.e. lead to an increase in social productivity (return) of resources. Other property conversions can lead to heavy losses and societal regression. Increasing efficiency is the economic criterion for the privatization of state property.
Transformations of state property are economically justified and progressive when they ensure the growth of social efficiency of production and the economic system as a whole. |
A very important legislative act regulating the relations of denationalization and privatization of state property in the Republic of Belarus is the Decree of the President of the Republic of Belarus No. 3 of March 20, 1998 “On the denationalization and privatization of state property in the Republic of Belarus”. The decree identifies the following features of denationalization and privatization of state property in the Republic of Belarus:
1. Transformation of state and lease enterprises into open joint-stock companies and redemption of leased state property by leased enterprises shall be carried out on the basis of proposals of labor collectives agreed upon by:
on objects in republican ownership, with the relevant republican bodies of state administration, associations subordinate to the Government of the Republic of Belarus, as well as with regional (Minsk city) executive committees; for objects that are in communal ownership, with the relevant local executive and administrative bodies.
2. In the absence of proposals from the labour collectives of enterprises, the Council of Ministers of the Republic of Belarus may act as the initiator of the denationalization and privatization of enterprises in republican ownership for the purpose of their financial recovery, and the relevant local executive and administrative body may act as the initiator of enterprises in communal ownership.
3. In the event of disagreements between the labor collectives of enterprises in republican ownership and the republican bodies of state administration, associations subordinate to the Government of the Republic of Belarus, as well as the regional (Minsk city) executive committees on the expediency of denationalization and privatization of specific objects, decisions shall be made:
for enterprises with more than 4 thousand employees – by the President of the Republic of Belarus; for enterprises with a number of employees from 2 to 4 thousand people – by the Council of Ministers of the Republic of Belarus; for enterprises with up to 2,000 employees – by the Ministry of State Property Management and Privatization.
4. In the event of disagreements between the labor collectives of enterprises in communal ownership and local executive and administrative bodies on the expediency of denationalization and privatization of these enterprises, decisions shall be made by these bodies in accordance with the procedure established by local Councils of Deputies.
5. The founders of open joint-stock companies created in the process of denationalization and privatization of objects in republican ownership, on behalf of the state, shall be the Ministry of State Property Management and Privatization or its territorial bodies, and objects in communal ownership shall be local executive and administrative bodies in the manner determined by local Councils of Deputies.
In addition to these bodies, the founders of such joint-stock companies may be legal entities and individuals, including foreign ones, who have contributed funds or property belonging to them to the authorized funds of these companies. The selection of founders of open joint-stock companies other than the state is carried out at the stage of preparatory work on objects of republican property by the Ministry for State Property Management and Privatization together with republican bodies of state administration, associations subordinate to the Government of the Republic of Belarus, and on communal property objects – by the relevant local executive and administrative bodies.
6. State enterprises of trade, public catering and consumer services, which include structural subdivisions, may be restructured in the process of privatization in coordination with local executive and administrative bodies.
7. The Ministry of State Property Management and Privatization shall own and dispose of shares owned by the state, transfer the state share of shares to the management of other republican bodies of state administration, associations subordinate to the Government of the Republic of Belarus, which appoint specially trained persons as representatives of the state in the management bodies of established open joint-stock companies in accordance with the legislation.
The Ministry of State Property Management and Privatization has the right to transfer on a competitive basis, in the manner determined by the Council of Ministers of the Republic of Belarus, to the management of legal entities and individuals shares of open joint-stock companies owned by the Republic of Belarus created in the process of denationalization and privatization of objects in republican ownership.
Local executive and administrative bodies shall own and dispose of shares of open joint-stock companies established in the process of privatization of communal property in the manner determined by the relevant Councils of Deputies.
8. Sale of state objects at tenders and auctions is carried out only for cash.
9. During the period of gratuitous privatization, up to 50 percent of the shares of open joint-stock companies owned by the state, created in the process of transformation of state and lease enterprises, shall be exchanged in accordance with the established procedure for registered privatization checks “Property”:
members of labor collectives and persons equated to them – as a matter of priority within five months from the date of state registration of shares on the basis of lists drawn up by the commission for the transformation of the enterprise into an open joint-stock company; citizens of the Republic of Belarus – through the structural subdivisions of the open joint-stock company “Savings Bank “Belarusbank” in accordance with the established procedure; other subjects of privatization – at specialized check auctions.
The final decision on the number of shares allocated for exchange for registered privatization checks “Property” is made by the Ministry for State Property Management and Privatization for Objects of Republican Property and the relevant local executive and administrative bodies – for objects of communal property based on the need to create conditions for the realization by every citizen of the Republic of Belarus of the right to receive a part of the state property free of charge. Property.
10. When exchanging registered privatization checks “Property” for shares of open joint-stock companies, as well as when rented property is bought out by lease enterprises, members of labor collectives and persons equated to them shall have the right to use checks issued to them personally, as well as those received under gift agreements and (or) by inheritance from close relatives (parents, children, spouses, siblings, grandchildren, grandparents, mothers-in-law, father-in-law, father-in-law and mother-in-law), provided that only checks issued to close relatives are given (inherited).
11. The sale of state-owned shares of open joint-stock companies established in the process of denationalization and privatization of objects in republican ownership shall be carried out by the Ministry for State Property Management and Privatization, and objects in communal ownership by the relevant local executive and administrative bodies in the manner determined by the relevant Councils of Deputies:
members of the labor collective and persons equated to them – within five months from the date of state registration of shares of the first issue, but not more than eight months from the date of adoption of the decision on the establishment of an open joint-stock company, at a price 20 percent lower than the nominal value and for an amount not exceeding 100 minimum wages per buyer. The number of shares of the first issue allocated for this purpose is determined on the basis of applications of members of the labor collective and persons equated to them; legal entities and individuals who submitted investment projects for the development of an open joint-stock company – at tenders and auctions; other methods provided for by law.
12. Shares acquired by citizens of the Republic of Belarus from the state for funds on preferential terms (at a price 20 percent lower than the nominal value) and in exchange for registered privatization checks “Property” may not be alienated during the period of gratuitous privatization, except in cases of transfer of ownership in connection with the death of a shareholder or with his departure for permanent residence outside the Republic of Belarus.
13. The second and subsequent issues of shares of open joint-stock companies created in the process of denationalization and privatization of objects previously in republican ownership shall be allowed with the consent of the Ministry of State Property Management and Privatization before the sale of the shares of the first issue, and objects that were in communal ownership – with the consent of the relevant local executive and administrative bodies.
14. A rental company shall acquire state property leased in accordance with the contract for the redemption of property. Up to 50 percent of the value of the purchased property can be paid by registered privatization checks “Property”. The rest of the property purchased is paid in cash at a price 20 per cent lower than the value of the property. The company has the right to pay the value of the property in installments within three years, taking into account the indexation of payments, provided that initially at least 30 percent of the value is paid within one month from the date of signing the contract of sale. The ownership of the leased state property passes to the new owner after full payment of the value of this property.
15. Upon expiration of the lease agreement of the property of a state enterprise leased, the lease enterprise shall be transformed in accordance with the legislation on denationalization and privatization into an open joint-stock company, or shall carry out the redemption of the leased property, or in accordance with the established procedure shall return this property to the lessor.
Extension (renewal) of lease agreements whose validity has expired shall be carried out in accordance with the procedure established by the President of the Republic of Belarus.
16. When selling at auction with conditions and (or) by tender enterprises with up to 100 jobs, whose debt on financial obligations is equal to or exceeds the active part of the balance sheet, the initial price for such an object shall be set in the amount of one minimum wage. The owner of the object privatized in this way is obliged to repay the debt to the state and other creditors in accordance with the established procedure, to save a certain number of jobs, to ensure the production and economic activities of the enterprise and to fulfill other conditions of the contract for the sale of this object.
17. It shall not be allowed to use borrowed funds, including loans, for the redemption of leased state property by rental enterprises, as well as for the acquisition of shares owned by the state by members of labor collectives, persons equated to them and legal entities formed by members of labor collectives.
18. In case of late transfer to the relevant budget of funds received from the sale of shares on preferential terms to members of the labor collective and persons equated to them, part of the dividends accrued on shares owned by the state, and funds received from the sale of state property at tenders and (or) auctions and sent in accordance with the established procedure for reconstruction, technical re-equipment and modernization of production, development of technologies and release of new types Of products, as well as dividends accrued on shares owned by the state, the taxpayer is indisputably charged by the tax authorities on the basis of information from the privatization authorities to the budget a fine of 10 percent of the principal amount of the payment due and a penalty in the amount provided for by the tax legislation.
Pursuant to Presidential Decree No. 3 of 20 November 1998 and with a view to increasing the efficiency of the use of State-owned property and improving the management system, the Council of Ministers of the Republic of Belarus adopted Decision No. 1240 of 10 August 2000 on the concept of state property management in the Republic of Belarus for 2001-2005. The Concept defines the main goals, objectives and principles of the state policy of the Republic of Belarus in the field of management of state property assigned to state unitary enterprises, including state-owned enterprises, and institutions, which is implemented through the management of these enterprises and institutions, as well as the property rights of the state arising from its participation in non-state commercial organizations.