At its sixty-third sitting, held on 17 July 2006, the Privatisation Committee of the National Assembly of the Republic of Serbia adopted the Report of the Ministry of the Economy on activities of the Privatisation Agency for June 2006, and the PA’s Programme of Activities for July 2006.

The Privatisation Committee adopted the Report of the Ministry of the Economy on activities of the Share Fund of the Republic of Serbia for June 2006. Two proposals were also adopted for resolving the situation at a company where privatisation contracts are about to be terminated before transfer to the Share Fund, as well as for another company where appointment of ‘capital representatives’ has proven difficult.

It was proposed that, before transferring a company to the Share Fund, bankruptcy should be opened where a company’s assets are less than its liabilities; if its property has been mortgaged; if its accounts have been blocked; if there are no final balances; if tax liabilities can be collected in enforcement; or if assets could be sold based on court judgments.

In case bankruptcy is opened before a company is transferred to the Share Fund, the PA’s Bankruptcy Unit would have greater chances to settle the company’s liabilities (by selling its assets piecemeal), and thus channel employee dissatisfaction. The employees would thus be faced with the truth – and bankruptcy would not in all cases mean compulsory liquidation; a ‘working bankruptcy’ could be instituted, and the company could continue operating.

When selecting temporary ‘capital representatives’, the Committee suggests, care should be taken that candidates have the support of shareholders, trade unions, and local authorities.

The Committee adopted the Activity Report of the Central Securities Registry, Depository and Clearing for June 2006.

The sitting, chaired by the Committee’s vice-chairman, Miodrag Stamenkovic, was attended by officials of the Ministry of the Economy, the Privatisation Agency, the Share Fund, and the Central Registry.