DECREE OF THE PRESIDENT OF UKRAINE

CORPORATIZATION OF ENTERPRISES

(amended by Decrees of the President of Ukraine
#354/93 of 21 August 1993
#580/93 of 13 December 1993
#20/94 of 22 January 1994)

In order to reform the management of the state sector of economy,
increase the responsibility of the state-owned enterprises for
their economic activities and prepare them for privatization r e s
o l v e :
1. To establish that corporatization means reorganization of the
state-owned enterprises, close joint-stock companies with more than
75% of the statutory fund being of the state property and
production and scientific-production amalgamations with the legal
statute that have not been changed in accordance with the
respective legislation (hereinafter referred to as the enterprises)
into open joint-stock companies.
The enterprises with the balance cost of the basic funds was no
less than 20 mln karbovanets for 1 January 1993 shall be subject to
corporatization.
This Decree is of no effect for the enterprises that are not
subject to privatization in accordance with the legislation, the
enterprises on which the decision on privatization has already been
adopted, and natural resources monopolies and the enterprises under
the Decree of the Cabinet of Ministers of Ukraine of 17 May 1993 N
51 "Peculiarities of Property Privatization in Agro-Industrial
Complex" (except enterprises under the State Fisheries and Fishery
Industry Committee of Ukraine) and the Decree of the Cabinet of
Ministers of Ukraine of 20 May 1993 N 57 "Privatization of Single
Property Complexes of State-Owned Enterprises and Their Structural
Divisions Let Out on Lease".
Inclusion of a state-owned enterprise in the list of enterprises to
be corporatized shall be grounds for respective bodies authorised
to manage over the state property to 
2. Founders of the open joint-stock companies that are formed in
accordance with this Decree and are based on the state-owned
property shall be the ministries and other state executive bodies
under the Cabinet of Ministers of Ukraine being empowered to manage
this property.
3. To recommend to the bodies empowered to manage the municipal
property to hold corporatization, as provided in this Decree.
4. Members to the Board of Supervisors of the open joint-stock
company, including the representatives of the company, founding
organizations, banks in the service for the company, work
collective and privatization body, shall be approved by the
Ministry of Economy, Ministry of Finance and the State Property
Fund of Ukraine. The Board of Supervisors may include
representatives of other bodies and organizations. Powers for the
Board of Supervisors of the open joint-stock company shall be set
up in the Regulation on the Board of Supervisors.
5. The director of the enterprise under privatization is conferred
with the obligations of a chairman of board of the joint-stock
company.
The chairman of board shall submit for the approval of the Board of
Supervisors the members to the Board of Directors from the
officials of the enterprise under corporatization.
6. For the Cabinet of Ministers of Ukraine:
within the one-week period to approve the Regulation for
corporatization of an enterprise;
within the one-month period to approve the Regulation on the Board
of Supervisors.
7. Within the one-month period the bodies empowered to manage the
state-owned property along with the Ministry of Statistics of
Ukraine shall submit to the Ministry of Economy the list of
enterprises under corporatization and the schedules for
corporatization. The Ministry of Economy of Ukraine shall approve
the lists and schedules within  two weeks after receiving them.
Within the ten-day period the Ministry of Statistics and the
Ministry of Economy of Ukraine shall approve the form for the list
of enterprises under corporatization.
8. Founders of the open joint-stock companies, after the decision
on their privatization is adopted, shall submit the shares of these
companies to the state privatization bodies in the order
established by the Ministry of Finance of Ukraine and the State
Property Fund of Ukraine.
9. During privatization of the enterprises, corporated according to
the schedules, as provided in item 7 of this Decree, the directors,
deputy directors, leading specialists, heads of departments have
the right for additional purchase of the shares of the company for
their nominal cost with payments delayed for one year for the total
amount of 5% of the statutory fund of the company after the
enterprise employees bought shares of the company on the privileged
basis. Delayed payments are allowed where no less than 30% of the
cost of bought in shares are paid off.
10. Authorities of the ministries and other state executive bodies
under the Cabinet of Ministers of Ukraine shall take the
responsibility for carrying out the corporatization.
11. The fulfillment of this Decree shall be under the control of
the Cabinet of Ministers of Ukraine.
12. This Decree shall come into force when signed.


President of Ukraine L.Kravchuk
Kyiv, 15 June 1993
N 210/93