The new Law of Turkmenistan on Trust Management of State Property entered into force on November 16 with its publication in the official Turkmen press. In accordance with the new law, legal entities can now become trustee of state property, namely shares and stocks in the capitals of economic societies and joint-stock companies, as well as state enterprises.
The law was developed with the aim of increasing the efficiency of the use of state property and its profitability, attracting foreign and domestic investment in the country's economy, improving the economic and financial condition of state property and contributing to the successful implementation of domestic socio-economic programs and projects.
To transfer state property to trust management, the trustee must be:
- registered in the manner prescribed by the legislation of Turkmenistan as a legal entity;
- have at least three years of work experience;
- be profitable in the last two years;
- not have overdue debts to the State budget and credit institutions for loans.
The transfer of state property to trust management is carried out on a competitive basis or by direct (targeted) transfer.
The trustee has the right to remuneration, as well as to reimburse the necessary expenses incurred in the trust management of state property, at the expense of income received from the operation of state property transferred to him in trust, but not more than 20% of the income for the relevant period.
The owner of state property has the right to check the integrity and safety of the transferred state property, to receive information related to his activities, as well as to monitor and verify the implementation and fulfillment of the terms of the contract.
In turn, the trustee has the right to perform any legal and factual actions in accordance with the contract in the interest of the owner, to remunerate and reimburse the necessary expenses incurred during trust management, set prices for manufactured products, approve the structure and staffing of the enterprise, and place personnel during the implementation of the business plan of the state property.
The legislation of Turkmenistan on the trust management of state property is based on the Constitution of Turkmenistan and consists of the Civil Code of Turkmenistan, this Law and other regulatory legal acts of the country.
Source: Law of Turkmenistan on Trust Management of State Property