Govt restricts scope of executive committees’ pre-emption acquisition right
<p> MINSK, Nov 20 - PrimePress. The government of Belarus has significantly reduced the list of economic companies, whose shares (stakes) are subject to the pre-emption acquisition right of Minsk City Executive Committee and Minsk Oblast Executive Committee. </p> <p> </p> <p> The new terms of pre-emption acquisition, which took effect on Oct 29, 2020, is stipulated by the Council of Ministers’ Resolution No. 608 of October 26, 2020, Arzinger & Partners Law Company says in a commentary. </p> <p> </p> <p> Resolution No. 608 has left only one enterprise – Komintern JSC, which remains subject to pre-emption acquisition right of Gomel Oblast Executive Committee. </p> <p> </p> <p> At the same time, the preemptive right of executive committees to shares in companies established in the process of transformation of state agricultural enterprises is still preserved. </p> <p> </p> <p> “Often, the existence of the preemptive right presents an additional difficulty for an investor in repurchasing shares from individuals - there may be many of them, and each person must request a waiver from the Executive Committee of the preemptive right to purchase them. This is all an unnecessary waste of time for a company that is already ready to invest. Hopefully, the current shortening of the lists is a step towards complete abolition of the preemptive right of the Executive Committees to acquire shares (stakes), which will give an additional impetus to investment activity and the stock market,” says Arzinger & Partners. </p> <p> </p> <p> As reported earlier, the preferential right to acquire shares (stakes in the authorized funds) of business entities was granted to regional executive committees and Minsk City Executive Committee by Presidential Ordinance No. 677 of November 16, 2006. In accordance with the ordinance, the government draws up lists of joint-stock companies subject to the preemptive right of regional executive committees to purchase shares that were acquired by citizens during preferential privatization. Such lists were very large and have since been repeatedly reduced. </p> <p> </p> <p> The Securities Department of the Ministry of Finance has repeatedly noted that the pre-emption acquisition right slows down the development of the stock market. The period for exercising the pre-emption acquisition right may be up to three months, which is a limiting factor for activation of market participants. End </p>
2020-11-21
Primepress
MINSK, Nov 20 - PrimePress. The government of Belarus has significantly reduced the list of economic companies, whose shares (stakes) are subject to the pre-emption acquisition right of Minsk City Executive Committee and Minsk Oblast Executive Committee.
The new terms of pre-emption acquisition, which took effect on Oct 29, 2020, is stipulated by the Council of Ministers’ Resolution No. 608 of October 26, 2020, Arzinger & Partners Law Company says in a commentary.
Resolution No. 608 has left only one enterprise – Komintern JSC, which remains subject to pre-emption acquisition right of Gomel Oblast Executive Committee.
At the same time, the preemptive right of executive committees to shares in companies established in the process of transformation of state agricultural enterprises is still preserved.
“Often, the existence of the preemptive right presents an additional difficulty for an investor in repurchasing shares from individuals - there may be many of them, and each person must request a waiver from the Executive Committee of the preemptive right to purchase them. This is all an unnecessary waste of time for a company that is already ready to invest. Hopefully, the current shortening of the lists is a step towards complete abolition of the preemptive right of the Executive Committees to acquire shares (stakes), which will give an additional impetus to investment activity and the stock market,” says Arzinger & Partners.
As reported earlier, the preferential right to acquire shares (stakes in the authorized funds) of business entities was granted to regional executive committees and Minsk City Executive Committee by Presidential Ordinance No. 677 of November 16, 2006. In accordance with the ordinance, the government draws up lists of joint-stock companies subject to the preemptive right of regional executive committees to purchase shares that were acquired by citizens during preferential privatization. Such lists were very large and have since been repeatedly reduced.
The Securities Department of the Ministry of Finance has repeatedly noted that the pre-emption acquisition right slows down the development of the stock market. The period for exercising the pre-emption acquisition right may be up to three months, which is a limiting factor for activation of market participants. End