LAW OF UKRAINE

of March 3, 1998 No. 147/98-BP

About transfer of objects of the right of the state-owned and municipal property

This Law determines the basic principles of transfer of objects of the right of state-owned property to municipal property of territorial bulks of villages, settlements, the cities, areas in the cities or in common property of territorial bulks of villages, settlements, cities, and also objects of the right of municipal property in state-owned property free of charge or by exchange.

Article 1. Scope of the Law

This Law governs the relations connected with transfer of objects of the right of state-owned property to municipal property of territorial bulks of villages, settlements, the cities, areas in the cities or in common property of territorial bulks of villages, settlements, cities, and also objects of the right of municipal property in state-owned property.

Operation of this Law extends to the objects of the right of the state-owned and municipal property including transferred to free use to the self-controlled organizations and the organizations or to lease.

Transfer to the state-owned or municipal property of objects of the right of other patterns of ownership can be regulated by provisions of this Law if other is not provided by the law or decisions of the relevant local councils.

Article 2. Subjects to transfer

1. Subjects to transfer according to this Law are:

complete property complexes of the companies, organizations, organizations (further - complete property complexes of the companies), their structural divisions;

real estate (buildings, structures, including rooms (after their allocation in separate accounting unit (inventory object) based on distribution balance), objects of construction in progress);

other separate individual certain property of the companies;

shares (shares, shares) belonging to the state or persons of law of municipal property in property of economic societies;

objects of housing stock (including hostels as real estate units, housing estates and/or their parts) and other objects of social infrastructure (educational institutions, culture institutions (except movie theaters), physical culture and sport, health cares (except sanatoria, dispensaries, rest houses and drugstores), social security, nurseries improving the camp) which are under complete economic authority or operational management of the state companies, organizations, organizations (further - the companies) or did not enter the authorized capital of the economic societies created in the course of privatization (corporatisation) including not finished by construction.

2. Cannot be subjects to transfer from state to municipal property:

complete property complexes of the companies which carry out the activities provided by parts one and the second article 4 of the Law of Ukraine "About entrepreneurship";

complete property complexes of the state companies;

the property of the companies which is written off in the procedure established by the legislation;

objects, the property right to which is not registered in the procedure established by the law (except objects of housing stock and hostels, real military estate which is released in the course of reforming of the Armed Forces of Ukraine);

objects which construction actually proceeds due to the state capital investments, before their input in operation;

objects concerning which there is relevant decision about their privatization.

Article 3. Initiative about transfer of objects of the right of the state-owned and municipal property

The initiative about transfer of objects of the right of the state-owned and municipal property can proceed respectively from bodies, authorized to manage state-owned property, National academy of Sciences, other similar self-regulating organizations to which the state-owned property (further self-regulating organizations), local executive bodies, relevant organs of local self-government is transferred to use.

Article 4. Decision making about transfer of objects of the right of state-owned property to municipal property

1. Transfer of objects from state in municipal property is performed according to the decision:

The Cabinet of Ministers of Ukraine - concerning the objects determined in paragraphs the second - the fifth part one of article 2 of this Law (except the real estate intended only for placement of preschool educational institutions);

bodies, authorized to manage state-owned property, self-regulating organizations - concerning objects, the determined in paragraph six of part one of article 2 of this Law, and the real estate intended only for placement of preschool educational institutions.

2. Transfer of objects from state in municipal property of territorial bulks of villages, settlements, cities, areas in the cities is performed in the presence of the consent of the corresponding rural, settlement, city, district councils in the cities if other is not provided by the law, and in common property of territorial bulks of villages, settlements, cities - in the presence of the consent of regional or regional councils if other is not provided by the law.

3. Offers on transfer of objects from state in municipal property which is performed according to the decision of the Cabinet of Ministers of Ukraine are approved with:

body, authorized to manage state-owned property, or the relevant self-regulating organization;

body of protection of cultural heritage - concerning transfer of objects of cultural heritage which are monuments;

body, authorized to manage the state corporate laws, - concerning the shares (shares, shares) belonging to the state;

state body of privatization;

the company - concerning transfer of complete property complexes of its structural divisions, the real and other separate individually certain estate assigned to such company;

labor collective of the company - concerning the objects constructed and/or acquired at the expense of means of such company. The consent of labor collective of the company is provided in the form of excerpt from the protocol of general meeting (conference of representatives) of labor collective.

4. If transfer of objects from state in municipal property is performed according to the decision of the Cabinet of Ministers of Ukraine, the offer concerning transfer of the specified objects are approved by the initiators of such transfer specified in article 3 of this Law and move to the central executive body concerning economic policy.

In offers are specified:

in case of transfer of complete property complex of the company - the name of the company, identification code according to the Unified State Register of Legal Entities and physical persons - entrepreneurs, the location, the name of body which performs functions on property management of the company, condition of privatization (corporatisation) of the company in case of decision making about its privatization (corporatisation) at the moment;

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