RESOLUTION OF THE CABINET OF MINISTERS OF THE REPUBLIC OF UZBEKISTAN

of August 18, 1997 No. 404

About measures for enhancement of placement of blocks of shares and increase in role of shareholders in management of the joint-stock companies formed based on state-owned property

In pursuance of the Presidential decree of the Republic of Uzbekistan of March 31, 1997 No. UP-1740 "About Additional Measures for Market Development of Securities and Expansion of Participation of Foreign Investors in the Stock Market of the Republic", enhancement of the controling mechanism the state ownership ratio, and also for the purpose of increase in role of shareholders in management of joint-stock companies, the Cabinet of Ministers decides:

1. To the State Property Committee of the Republic of Uzbekistan together with the relevant ministries, departments, corporations, the companies, associations:

till December 31 of this year to carry out inventory count of current status of placement (realization) of shares by each joint-stock company formed as a result of privatization of the state companies;

provide, if necessary, redistribution in accordance with the established procedure of blocks of shares of the pro-inventoried companies proceeding from provisions of Item 1 of the Presidential decree of the Republic of Uzbekistan of March 31, 1997 to No. UP-1740;

expose not placed during the term established by the legislation (within one year from registration date of the prospectus of the issue) share fractions of the privatized companies, except for the shares left in state-owned property for sale in the free market with participation of legal entities and physical persons, including foreign;

during the forming and program implementation of privatization on 1998 and the next years to provide in prospectuses of the issue of the created joint-stock companies share placing in full accordance with the above-named Presidential decree of the Republic of Uzbekistan.

2. To the ministry of macroeconomic and statistics, the State Property Committee, the Ministry of Finance of the Republic of Uzbekistan together with the interested ministries and departments in two weeks to submit in the Cabinet of Ministers for approval the list of industries and business entities in whose authorized capital behind the state the block of shares exceeding 25 percent remains.

At the same time to mean that preserving behind the state of the share exceeding 25 percent of shares is allowed only on the industries and the companies determining the scientific and technical capacity of the country on prospect, and also ensuring economic safety of the Republic of Uzbekistan.

4. Determine that the redistribution of blocks of shares of joint-stock companies specified in paragraph three of Item 1 of this resolution is performed on the basis of increase in accordance with the established procedure in their authorized funds by release of additional shares.

At the same time increase in the state share in authorized capital of joint-stock company is performed for the account:

the amounts of the dividends added on the state share fraction for the entire period of existence of joint-stock company and left at its order, indexed at the time of increase in authorized fund;

the means provided by the state on a grant basis to joint-stock company for the entire period of its existence for development of material and technical resources or replenishment of own current assets, indexed at the time of increase in authorized fund;

the purpose-oriented loans allocated by the State Property Committee on reconstruction and modernization of joint-stock company for the entire period of its existence and not returned at the time of increase in authorized fund;

the funds from privatization allocated in accordance with the established procedure by the State Property Committee of the Republic of Uzbekistan for increase in authorized fund;

earlier not included in authorized capital of the joint-stock company created based on state-owned property, cost of the objects of social infrastructure which are on its balance which are not subject to transfer of the Republic of Karakalpakstan to Council of Ministers, khokimiyats of areas and Tashkent according to the resolution of the Cabinet of Ministers of September 26, 1997 No. 453 "About step-by-step transfer of departmental objects of the social sphere to balance of public authorities on places;

redistributions of own shares of the company acquired and paid with it at the expense of current assets (including shares of labor collective), but not placed in the time established by the legislation;

At the same time to recommend to the State Property Committee of the Republic of Uzbekistan to perform, if necessary, in accordance with the established procedure transformation to private enterprises of the joint-stock companies which do not have considerable economic potential on which depreciation of the fixed business assets exceeds 50 percent.

6. Ceased to be valid according to the Resolution of the President of the Republic of Uzbekistan of 26.12.2018 No. PP-4086

7. Ceased to be valid according to the Resolution of the President of the Republic of Uzbekistan of 26.12.2018 No. PP-4086

8. Ceased to be valid according to the Resolution of the President of the Republic of Uzbekistan of 26.12.2018 No. PP-4086

9. Ceased to be valid

10. To the State Property Committee of the Republic of Uzbekistan:

together with the Ministry of Finance to develop and submit for approval of the Cabinet of Ministers procedure for share transfer of the privatized companies in management to economic associations in a month on trust basis including for forming of authorized fund;

according to the Law of the Republic of Uzbekistan "About joint-stock companies and protection of shareholder rights" to develop and implement package of measures, the shareholder rights aimed at providing in the solution of the most important issues of activities of joint-stock company, accountability to shareholders of management of its executive office.

11. To the Ministry of Finance, the State Property Committee and the Central bank of the Republic of Uzbekistan to make offers in the Cabinet of Ministers on procedure for investment of means into securities by nonresidents of the Republic of Uzbekistan, and also capital export and dividends from investments into securities in a month.

12. To the center for coordination and control of functioning of the security market under the State Property Committee of the Republic of Uzbekistan in two weeks to prepare and approve "Regulations on licensing of activities of business entities in the security market as investment institutes" and "Provision on economic standard rates of activities of investment institutes".

13. To the Ministry of Labour of the Republic of Uzbekistan to develop and publish recommendations about legal regulation of employment relationships in joint-stock companies in a month.

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