Nationalisation? Golden share to be  introduced for private JSCs

Belarus plans to introduce an institute of authorised representatives of the state in joint-stock companies without state's share.

The State Committee for Property (SCP) prepared a draft decree on possessory supervision in joint-stock companies, including those without state's share, Interfax-West news agency learnt from the SCP press service.

The draft decree gives the state the right to appoint its authorised representatives to joint-stock companies without state's share. “An authorised representative will protect the rights of minor shareholders, our citizens,” a SCP representative said. He explained the decree would affect the joint-stock companies created on the basis of state-owned companies in the process of privatisation.

The draft decree will be introduced to the government.

The SCP declines to comment on the duties and power of “authorised representatives”.  In particular, the SCP doesn't comment on the possibility that state's authorised representatives will be able to influence decisions of JSC executive bodies.

Belarus used to have a similar institute of state's authorised representatives as a tool of practical implementation of the golden share rule – the right of the state to control business entities, including those without state's shares at the time of taking this decision. The golden share rule was introduced in Belarus in 1997 and cancelled in March 2008 on ruler's decree. The authorities noted the cancellation of the golden share rule would create favourable conditions for attracting direct foreign investments in the real sector of Belarus's economy, raise the country's rating on the international level and protect the rights of investors in the securities market.