The transfer of state corporate rights to business entities is a key aspect of economic reforms in Ukraine. This process aims to enhance the efficiency of state asset management, stimulate private investment, and strengthen the market economy. In this article, we will examine the legal foundations, procedures for transferring corporate rights, and provide practical examples of such transfers in Ukraine.
The transfer of state corporate rights is regulated by various legal acts in Ukraine, including:
- The Law of Ukraine "On the Management of State-Owned Objects".
- The Law of Ukraine "On the Privatization of State and Communal Property".
- Resolutions of the Cabinet of Ministers of Ukraine that regulate specific aspects of corporate rights transfer.
The procedures for transferring state corporate rights may include several stages:
1. Preparation for transfer
Preparation for the transfer of corporate rights involves asset evaluation, determining the feasibility of the transfer, preparing the necessary documentation, and conducting audits.
2. Conducting tenders and auctions
The transfer of corporate rights can be carried out through tenders and auctions, ensuring transparency and competitiveness of the process. The conditions of tenders and auctions are defined by the relevant legal acts.
3. Contract signing
After selecting the winner of the tender or auction, a contract for the transfer of corporate rights is signed. The contract specifies the terms of the transfer, the obligations of the parties, and other important aspects.
4. Monitoring and control
After the transfer of corporate rights, monitoring of contract compliance and control over the activities of the business entities receiving the rights are conducted.
In 2020, a decision was made to transfer the corporate rights of the state enterprise "Ukrzaliznytsia" to create a joint-stock company. This process included asset evaluation, restructuring of the enterprise, and conducting tenders to select investors.
PJSC "Centrenergo" is one of the largest power-generating enterprises in Ukraine. As part of privatization, a tender for the sale of corporate rights was conducted, attracting significant private investment and improving the management efficiency of the enterprise.
Challenges
- Bureaucratic procedures and corruption risks can complicate the process of transferring corporate rights.
- Market uncertainty and economic instability can negatively affect the investment climate.
Prospects
- Successful transfer of corporate rights can attract investment, create new jobs, and improve asset management efficiency.
- Reforming legislation and increasing transparency in corporate rights transfer procedures can improve the investment climate in Ukraine.
Subscribe to our channels on social networks:
Contact us: business@avitar.legal
Serhii Floreskul
,
Violetta Loseva
,
