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Belarus’ President Alexander Lukashenko has signed ordinance #144 to abolish the “golden share” rule, which allows the government to interfere with the management of a company regardless of how large or small a stake the government has in the company or whether it controls a stake at all, provided it once was state-owned.
The press service said the move would improve conditions for foreign direct investment in the real economy, upgrade Belarus’ rating on the world market and facilitate protection of investors on the securities market.
Also, the decision will help attain this year’s economic targets, the press service said.
“Golden share” used to be applied to companies failing to pay wages for three months in a row and having unsatisfactory bookkeeping balance sheet for six months. Another reason to introduce a “golden share” was to protect citizens and meet economic interests of the state.
The “golden share” applies to the entities created as a result of denationalization and privatization of All-Union (former Soviet Union), republican and communal property, including the entities that were denationalized and later reorganized. The relevant ministry, state holding or executive committee issues a decision to introduce the golden share and sets the term of validity by consent of the Council of Ministers and presidential property management department.
The “golden share” rule was repeatedly criticized by international financial institutions and called the main obstacle to investment.
Prime-Tass |
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