Free stocks for citizens before privatization - draft changes in Law on Free Stocks and Law on Privatization Agency adopted

The Government of Serbia adopted the draft changes in the Law on Free Stocks and the Law on Privatization Agency today (February 4, 2010), which will make it possible for the citizens to get the stocks of state-owned companies before their privatization.

According to the announcement by the Ministry of Economy of Serbia, the citizens will get free stocks of Telekom and Airport Nikola Tesla this year, while the stocks of the Electric Power Company of Serbia (EPS) will be distributed in 2011.

These changes in the laws are introducing the legal obligation for big state-owned systems to be organized as open joint-stock companies, while there are also fines for disrespect of that obligation.

The Stockholders Fund will be formed and unite all stocks and shares from the Privatization Registry, current Share Fund and other public companies and economic organizations with public capital.

It is stated that the united stocks from the Stockholders Fund will be distributed among citizens this year.

The Stockholders Fund will not have administrative organs or employees, and it portfolio of stocks and shares in companies will be managed by the Privatization Agency.

Changes and supplements to the Law on Privatization Agency stipulate the merger of the Share Fund and the Agency, which will contribute to reduction of number of employees and expenses.

Distribution of free stocks of public companies started on January 6th when the citizens obtained free stocks of privatized Petroleum Industry of Serbia (NIS).