Article 27. Contributing a State Institution as a Property Complex to the Charter Fund (Authorized Capital) of a Business Society as a State Share

Contributing a state institution as a property complex to the charter fund (authorized capital) of a business society as a state share shall be carried out in the prescribed procedure after the adoption of a decision by the management bodies of the business society on contributing the said property to the charter fund (authorized capital) of the society.

Contributing a state institution to the charter fund (authorized capital) of a business society as a state share shall be formalized by an order of the authorized state body or its territorial department.

The authorized state body shall annually submit an offer to the participants (shareholders) of the said business society to purchase a part of the state shares (stakes) at market value. In this regard, within 5 years after the adoption of the decision on contributing the state institution as a property complex to the charter fund (authorized capital) of the business society as a state share, the share of other participants (shareholders) must constitute more than 51 percent.

In case of the participants (shareholders) reject the proposal to acquire the state share (shares), such share (shares) shall be subject to privatization using the methods of privatization of state property established by this Law.