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PRESIDENTIAL DECREE OF THE REPUBLIC OF UZBEKISTAN

of January 24, 2003 No. UP-3202

About measures for cardinal increase in share and value of private sector in economy of Uzbekistan

(as amended on 18-03-2020)

For the purpose of stimulation of the accelerated private sector development, cardinal increase in its role and value in national economy, radical enhancement of corporate management system by the privatized companies:

1. Consider broad development of private entrepreneurship, creation of the companies founded on private property including as a result of privatization of state-owned property, and on this basis substantial increase of share of private sector in structure of economy the major priority of the economic reforms and market transformations undertaken in the country.

To the Cabinet of Ministers of the Republic of Uzbekistan in two-month time to develop and submit in accordance with the established procedure for consideration of Oliy Majlis of the Republic of Uzbekistan the bill "About Private Enterprise", having provided in it procedure for creation and activities of private enterprises, system of the privileges and preferences stimulating the priority growth of private property in the sphere of production and services.

2. Recognize inexpedient preserving the state share in authorized capital of joint-stock companies in sizes of 25 and less percent and enable its realization mainly in private property.

To the State Property Committee of the Republic of Uzbekistan:

realize step by step in the stock market in 2003-2004 the state blocks of shares of the privatized companies in which authorized fund the state share constitutes 25 and less percent;

in two weeks to introduce to the Cabinet of Ministers the draft of the Program of privatization and privatization for 2003-2005 taking into account provisions of this Decree.

3. Determine that:

the number of members of society with the limited and accessorial liability cannot exceed 50 legal entities and physical persons.

4. For the purpose of further stimulation of participation of physical persons in the course of privatization to exempt from the taxation for a period of five years income of physical persons gained in the form of the share dividends (shares) of economic societies and partnerships created based on the privatized companies.

5. Cancel procedure in case of which:

the decision of the supervisory board cannot be made without the consent of the trustee by the block of shares belonging to the state;

transfer of the state blocks of shares in authorized capital of economic associations with the right of trust management is allowed.

6. Determine that the most important function of associations, the companies, corporations and concerns implementation of single technical policy in the corresponding industries is, and they have no right to interfere with operational activity of the companies which are their part.

7. Together with Complexes of the Cabinet of Ministers in the first half of the year 2003 it is deep to special commission on questions of enhancement of management of the privatized companies to study activities of economic associations which authorized funds are formed at the expense of the state assets of the companies of the corresponding industries.

By results of the carried-out analysis to make the offers providing in the Cabinet of Ministers:

provide development and realization of system of measures for prevention of unreasonable intervention of associations, holdings, the companies, corporations, concerns and other economic associations in operational activity of the companies which are their part;

full-scale implementation of market mechanisms of providing the companies with raw materials and commodity material resources excluding their distribution through associations, the companies, corporations, concerns and other economic associations;

step-by-step transfer in 2003-2004 on competitive basis of the state blocks of shares (shares, shares) in trust management to professional managing companies.

8. For the purpose of increase in responsibility of executive bodies of joint-stock companies, first of all the management case, before shareholders and increases in efficiency of their activities to establish procedure in case of which:

the decision on appointment of the director (chairman of the board) is made by general shareholder meeting, mainly on the basis of competitive selection;

the employment contract with the director (chairman of the board) is signed for a period of one year with annual acceptance by general shareholder meeting, and in some cases the supervisory board, decisions on possibility of its prolongation or the termination;

the business plan of the company developed by executive body the forthcoming year which key parameters shall be increase in production, profitability and dividend payout is subject to approval by general shareholder meeting or according to its order the supervisory board;

the director (executive body of joint-stock company) quarterly reports to the supervisory board on the course of accomplishment of the annual business plan. The supervisory board has the right of early termination of the employment contract with the director (chairman of the board) in case of gross violations or failure of accomplishment of the approved parameters of the annual business plan;

material stimulation of chief executives and chairmen of the supervisory boards is in direct dependence on efficiency of activities of joint-stock company.

9. Determine that combination of activities of members of the supervisory boards with their labor activity for hiring in these joint-stock companies is not allowed.

To the Cabinet of Ministers of the Republic of Uzbekistan to review Standard regulations on the Supervisory board of joint-stock company taking into account requirements of this Decree in a month.

10. For the purpose of enhancement of system of preparation and retraining of the managerial personnel for joint-stock companies to create the Center of corporate management in structure of the Higher school of business under Academy of the state and public construction in case of the President of the Republic of Uzbekistan with assignment of functions on it on the organization of training courses for corporate management, the financial reporting, effective management for members of the supervisory boards and the management case.

11. Consider N UP-1740 "About Additional Measures for Market Development of Securities and Expansion of Participation of Foreign Investors in the Stock Market of the Republic" which voided the Presidential decree of the Republic of Uzbekistan of March 31, 1997.

12. To the Ministry of Justice of the Republic of Uzbekistan together with the interested ministries and departments to make in the Cabinet of Ministers the offers on changes and amendments in the current legislation following from this Decree in a month.

13. To the Cabinet of Ministers of the Republic of Uzbekistan to accept the resolution in pursuance of this Decree in a month.

14. To impose control of execution of this Decree on the Prime Minister of the Republic of Uzbekistan Sultanov U. T.

President of the Republic of Uzbekistan

I. Karimov

Disclaimer! This text was translated by AI translator and is not a valid juridical document. No warranty. No claim. More info

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