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LAW OF THE REPUBLIC OF UZBEKISTAN

of December 25, 1997 No. 535-I

About sanitation of agricultural enterprises

(as amended on 21-02-2024)
Article 1. Purpose and main objectives of sanitation of agricultural enterprises

Pre-judicial sanitation (further - sanitation) is performed before initiation of proceedings about insolvency of agricultural enterprises and aims at recovery of solvency, economic solvency of agricultural enterprise and creation of conditions for further implementation of its effective activities.

The main objectives of sanitation of agricultural enterprise are:

implementation of the necessary transformations directed to enhancement of the organization and management of activities of agricultural enterprise;

creation of necessary conditions for production and realization of competitive products;

ensuring its financial stability.

Article 2. Legislation on sanitation of agricultural enterprises

The relations arising in the course of sanitation of agricultural enterprises are regulated by this Law and other acts of the legislation.

If the international treaty of the Republic of Uzbekistan establishes other rules, than those which are stipulated by the legislation the Republic of Uzbekistan about sanitation of agricultural enterprises are applied rules of the international treaty.

Article 3. Objects and subjects of sanitation

Subjects to sanitation are unprofitable, insolvent and economically insolvent agricultural enterprises.

Owners of property of agricultural enterprises, creditors or other legal entities and physical persons can be subjects of sanitation.

Article 4. Forms and main types of sanitation

Sanitation can be carried out with attraction or without involvement of public funds. Involvement of public funds in the course of sanitation is performed only on paid basis.

Main types of sanitation are:

organization of mutual offsetting of debts;

complete or partial redemption of unsettled debts;

delay on tax payment and other obligatory payments according to the legislation and to return of public credits for the term of sanitation;

production reshaping on release of competitive products;

attraction from highly qualified specialists;

preparation and retraining of personnel;

financial assistance by the legal entities and physical persons interested in recovery of solvency of agricultural enterprise and continuation of its activities;

the agreement between the company and the creditor (creditors) directed to achievement of the arrangement between them on delay and (or) payment by installments of the payments which are due to creditors or discount from debts for continuation of activities of the company;

introduction of external management;

reorganization of the company.

Article 5. The state support in case of sanitation

The state support in case of sanitation is given to agricultural enterprises proceeding from priorities of economic and social development, taking into account importance of the company for development of industry, and also for market grouping of work and employment.

Article 6. Authorized body for sanitation

Carrying out state policy on sanitation of agricultural enterprises performs the body for sanitation cases authorized by the Government of the Republic of Uzbekistan (further - authorized body).

Article 7. The features considered in case of sanitation of agricultural enterprises

In case of sanitation of agricultural enterprise the following features are considered:

food and strategic orientation of agricultural production;

need of ensuring rational and target use of the earth as fixed asset of production in agricultural industry;

condition of the lands used by agricultural enterprise;

seasonality and duration of cycle of production;

dependence of results of production on climatic conditions;

conditions of forming of the income and their use.

Article 8. Control of carrying out sanitation

Control of carrying out sanitation of agricultural enterprise is exercised by authorized body according to the procedure, established by the legislation.

Article 9. Sources of means for carrying out sanitation

Sources of means for carrying out sanitation of agricultural enterprise are:

financial aid of owners of property of the company, creditors, associations of the companies (economic associations), other legal entities and physical persons;

public funds;

own means of agricultural enterprise;

other sources of means which are not prohibited by the legislation.

Article 10. Satisfaction of requirements of creditors

The satisfaction of requirements of creditors of agricultural enterprise is made according to the legislation.

Article 11. The basis for decision making about carrying out sanitation

The basis for decision making about carrying out sanitation of agricultural enterprise is the conclusion of authorized body about analysis results of financial and economic activity following the results of agricultural year, testimonial of availability of real possibility of recovery of solvency and economic solvency of agricultural enterprise.

Depending on degree of financial condition of agricultural enterprise different forms and types of sanitation are applied.

Article 12. Petition for carrying out sanitation

The petition for carrying out sanitation can be submitted by the owner of property of agricultural enterprise, the creditor (creditors) with the consent of the owner of property of the company to authorized body. The authorized body has the right to act as the initiator of carrying out sanitation of agricultural enterprise with the consent of the owner of property of the company.

Article 13. Term of carrying out sanitation

Sanitation of agricultural enterprise is entered for a period of up to twenty four months. Prolongation of this term for twelve months in cases, stipulated by the legislation is allowed.

Article 14. Decision on carrying out sanitation

The decision on carrying out sanitation of agricultural enterprise is made by authorized body.

The decision on carrying out sanitation of agricultural enterprise can be made by also economic court according to the procedure, stipulated by the legislation.

Article 15. Tender on carrying out sanitation

In case of decision making about carrying out sanitation of agricultural enterprise the authorized body with the consent of the owner of property of the company and creditors announces competition in seal on carrying out sanitation.

Any legal entities and physical persons are allowed to participation in tender. The application for participation in tender is submitted to authorized body within a month from the date of publication of the announcement of carrying out tender.

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