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Rights and privileges at purchase of shares and objects Print E-mail
48

It shall be established, that:

 - purchase by foreign investors of the enterprises or stocks and shares are made for the hard currency, and investment obligations are formed both in a foreign currency, and in form of supplies of the modern technological equipment, the cost of which is defined in the established order;

- assets in a foreign currency or the technological equipment, received by the privatized enterprise on account of investment obligations of a foreign investor, are not object of taxation by income (profit) and value added taxes.

Paragraphs 1-2, 5 of the Clause 4 of the Resolution of the Cabinet of Ministers as of 18.11.1998 №477 "On measures to stimulate attraction of the foreign capital during privatization of a state property".
49

The State Commission for conducting tenders on sale of the state-owned property to foreign investors, in separate cases, when involving investments into the enterprises possessing strategic value for the economy is granted the right:

 - to adopt the decision on re-structuring of accumulated before sale of the enterprise (stocks and share) debts to the state budget and the state enterprises, including a delay of payments on them;

- to establish upon the request by the foreign investor the moratorium on increase of requirements on nature protection parameters for the period of setting-up of new capacities and production.

Clause 3 of the Resolution of the Cabinet of Ministers as of 26.11.1999 №511 "On measures to denationalize and privatize the enterprises with participation of foreign investors in 2000-2001".
50 During attraction of the investments, including the foreign ones, into the increase of the charter fund of joint-stock companies, the decrease of state-owned share in it is allowed, except for enterprises the size of state-owned share in which is fixed by separate Resolutions of the Government. The paragraph 5 of Clause 2 of the Resolution of the Cabinet of Ministers as of 09.03.2001 №119 "On further measures to denationalize and privatize the enterprises with participation of foreign investors in 2001-2002".
51

Non-residents of Republic Uzbekistan are allowed to use means in the national currency, accumulated on their accounts at Accounts’ Settling- Clearing Chambers of Commodity Exchanges and Joint-Stock Company "Uzkurgazmasavdo", on correspondent accounts "Loro" of foreign banks opened at the authorized banks of the Republic, special accounts at Accounts’ Settling- Clearing Chambers of exchanges:

- for purchase of shares of domestic emitters both in primary, and secondary markets;

 

- in process of effecting, upon the decision of the State Commission for Conducting Tender Sales, the combined payment for state owned property.

Clause 3 of the Resolution of the Cabinet of Ministers as of 09.03.2001 №119 "On further measures to denationalize and privatize the enterprises with participation of foreign investors in 2001-2002".
52 To grant the State Tender Commission the right to adopt decisions upon proposal by the State Property Committee of the Republic of Uzbekistan previously agreed with (branch) Complexes of the Cabinet of Ministries related to flexible application by foreign investors of various forms of payment for the share packages and objects being purchased by them. Paragraphs 1-2 of Clause 4 of the Resolution of the Cabinet of Ministers as of 09.03.2001 №119 "On further measures to denationalize and privatize the enterprises with participation of foreign investors in 2001-2002".
53

State Property Committee of the Republic of Uzbekistan:

- upon previous agreement with the Complexes of the Cabinet of Ministries in the established order can make decisions on sale on a competitive basis of the stocks, shares of enterprises and objects as a whole-piece, which were not sold during one year (except for the enterprises subject to privatization by Case-by-Case Projects), with inclusion into the price of an object  of the cost of investor's investment obligations provided that the investor submits a sound business-plan for financial rehabilitation of the enterprise;

 - has the right to transfer on a competitive basis the state-owned property into trust management by an investor, with the right of its subsequent purchase in installments within 5 years, at presence of the business - plan on financial rehabilitation of the enterprise and concrete investment obligations;

 - in cooperation with the appropriate Complexes of the Cabinet of Ministries, at the expediency, carries out in the established manner, the restructuring (reorganization) of large, non-perspective and unprofitable enterprises, with the right of putting up their property for sale by separate parts.

Paragraphs 3 - 5 of the Clause of the Resolution of the Cabinet of Ministers as of 26.03.2002 № 97 "On additional measures to ensure implementation of denationalization and privatization programs, attract the foreign investments
54 Founders of the enterprises with foreign investments may use their dividends, received in hard currency and intended for repatriation abroad, for purchasing shares (stakes) of enterprises and objects as a whole-piece in the Securities’ Market of Uzbekistan. Clause 4 of the Resolution of the Cabinet of Ministers as of 26.03.2002 № 97 "On additional measures to ensure implementation of denationalization and privatization programs, attract the foreign investments".
55 The investment obligations accepted by foreign investors at purchase of shares (stakes) of the enterprises and objects as a whole-piece, can be implemented in form of direct investments in way of supplies of the equipment, spare parts and accessories for technical modernization and reconstruction of production facilities, repayment by an investor of the enterprises’ debts to state budget, the state specialized funds and the credits received under Government guarantees. Paragraph 3 of the Clause 4 of the Resolution of the Cabinet of Ministers of the Republic of Uzbekistan as of 17.04.2003 №185 "On the program of denationalization and privatization of the enterprises for 2003-2004".
56 Upon the decision by the State Tender Commission and the Board of the State Property Committee the state assets of unprofitable, financially insolvent and low profitable enterprises, which are unable to independently find financial resources for re-structuring and rehabilitation, can be sold on a competitive basis to investors by the price below par value under condition of acceptance by the buyers of investment obligations, sufficient for technical re-equipment and expansion of production volumes, as well as repayment of creditor debts of the enterprise. Paragraph 5 of the Clause 4 of the Resolution of the Cabinet of Ministers of the Republic of Uzbekistan as of 17.04.2003 №185 "On the program of denationalization and privatization of the enterprises for 2003-2004".
57 Concerning the low-profitable, non-profitable, economically insolvent enterprises, sold to investors at zero purchase price in exchange for their investment obligations, the write-off of hopeless debts of the past years related to payments due into the state budget and out-of-budget funds, including fines and penalties charged on them, is made. Paragraph 4 of the Clause 3 of the Resolution of the Cabinet of Ministers of the Republic of Uzbekistan as of 17.04.2003 №185 "On the program of denationalization and privatization of the enterprises for 2003-2004".
58 To the investors having purchased non-control stocks’ packages (shares), but bringing significant volumes of   investments into modernization and technical re-equipment of   the enterprises, are entitled to acquire the    right for management of the state-owned share in those enterprises without the announcement of   a competition. The decision of   The Republic of   Uzbekistan the State committee from July, 8, 2005 №01/06-18/03 « About the statement of   Regulations about the order of   granting to investors,getting not control share holdings (shares), but bringing significant volumes of   investments into modernization and modernization of   the enterprises, rights of   management stateshare without carrying out of   competition », registered by the Ministry of   Justice 5.08.2005г. №1504.
The note: The enterprises with foreign investments in accordance with the general practice also enjoy other guarantees, privileges and rights, foreseen by the legislation concerning legal entities of   the Republic of   Uzbekistan.
 
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