LAW OF UKRAINE

of September 21, 2006 No. 185-V

About management of objects of state-owned property

This Law according to the Constitution of Ukraine determines the legal basis of management of objects of state-owned property.

Article 1. Concept of management of objects of state-owned property

1. Management of objects of state-owned property - implementation by the Cabinet of Ministers of Ukraine and the bodies authorized by it, other subjects determined by this Law, powers concerning realization of the rights of the state as the owner of such objects connected with ownership, use and the order them in the limits determined by the legislation of Ukraine for the purpose of satisfaction of the state and public requirements.

Article 2. Legislation on management of objects of state-owned property

1. The legislation on management of objects of state-owned property consists of this Law, the Economic code of Ukraine, the Tax code of Ukraine, the Law of Ukraine "About protection of the economic competition", other laws of Ukraine by which features of management of separate objects of state-owned property or their types, and other regulatory legal acts concerning management of objects of state-owned property can be established.

Article 3. Objects of management of state-owned property

1. Objects of management of state-owned property are:

the property transferred to the state companies, the state non-commercial enterprises to operational management;

the property transferred to the state commercial enterprises (further - the state companies), to organizations and the organizations;

the property transferred to the national economic associations;

the corporate laws belonging to the state in the authorized capital of the economic organizations (further - corporate laws of the state);

the state-owned property providing activities of the President of Ukraine, the Verkhovna Rada of Ukraine and the Cabinet of Ministers of Ukraine;

the state-owned property leased leasing;

the state-owned property transferred and/or created (constructed) based on the agreement of public and private partnership, the concession treaty;

the state-owned property which is consisting on balance of the economic organizations and did not enter their authorized capital or remained after liquidation of the companies and organizations;

the state-owned property transferred to unlimited bezoplatny use of National academy of Sciences of Ukraine, to industry academies of Sciences;

ownerless and condemned property which passes into state-owned property by a court decision;

the state-owned property transferred on the right of usufruct of state-owned property or other corporeal right to state-owned property provided by the law. 

2. Operation of this Law does not extend to management of the objects of property of the Ukrainian people determined by part one of article 13 of the Constitution of Ukraine and also to implementation of intellectual property rights.

Features of management of objects of state-owned property in defense industrial complex are determined by the Law of Ukraine "About features of management of objects of state-owned property in defense industrially complex" and the Law of Ukraine "About features of reforming of the companies of defense industry complex of the state pattern of ownership".

Features of management of Export credit agency are determined by the Law of Ukraine "About financial mechanisms of stimulation of export activities".

Features of management of Fund of energy efficiency are determined by the Law of Ukraine "About Fund of energy efficiency".

Operation of this Law does not extend to bank management which is performed according to the Law of Ukraine "About banks and banking activity", except the cases which are directly established in this paragraph. Action of provisions of paragraphs two and the fourth part two and part eight of Article 11-2, of paragraph two of part one, parts three and the fourth article 14 of this Law extends to bank management in which authorized capital more than 50 percent of shares belong to the state, except national banks, control of which is exercised according to article 7 of the Law of Ukraine "About banks and banking activity".

Operation of this Law does not extend to control of national banks which is exercised according to the Law of Ukraine "About banks and banking activity", and also to management of Fund of partial guaranteeing the credits in agricultural industry, is performed according to the Law of Ukraine "About Fund of partial guaranteeing the credits in agricultural industry", except paragraph one of part two of Article 11-2 and on control of development of National institution which is exercised according to the Law of Ukraine "About National institution of development".

Operation of this law does not extend to transfer into the ownership of the organizations of water users of objects of engineering infrastructure of meliorative systems of the state pattern of ownership.

3. Subjects of managing of public sector of economy are legal entities, the single participant (founder) of which is the state, and also legal entities in whose authorized capital 50 percent of shares (shares) belong to the state or the share of the state constitutes the size providing it the right of decisive influence on activities of such legal entities.

Subjects of managing of public sector of economy provide to the central executive body which provides forming and realizes state policy in the field of management of objects of state-owned property, information for forming of the database of the electronic reporting of subjects of managing of public sector of economy according to the procedure, established by the Cabinet of Ministers of Ukraine.

Information of the database of the electronic reporting of subjects of managing of public sector of economy is subject to promulgation according to the procedure, established by the Cabinet of Ministers of Ukraine. At the same time the Cabinet of Ministers of Ukraine establishes criteria according to which information on subjects of managing of public sector of economy of the database of the electronic reporting of subjects of managing of public sector of economy is not subject to promulgation during action of legal regime of warlike situation or state of war.

4. Sale (alienation), transfer to lease (employment) of objects of state-owned property are performed on the competitive beginnings by holding electronic auctions (the public biddings) in electronic trading system taking into account the features determined by the law.

Functioning and development of the electronic trading system (ETS) are provided at the expense of payment on development of ETS constituting third of the amount of the maximum remuneration of the operator of an electronic trading platform (payment for participation in electronic auction) if other is not established by the legislation.

The Cabinet of Ministers of Ukraine on representation of the central executive body providing forming and realization of state policy in the field of realization of property (property rights, other assets) or the rights to it on the competitive beginnings in the form of auctions including electronic auctions, also exercises control of its realization, determines procedure the ETS administrator of control of observance by operators of electronic platforms of requirements to standards of provision and development of services, including websites and services.

For the purposes of this law the terms "electronic trading system", "electronic platform", "operator of an electronic trading platform" are used in the values given in the laws of Ukraine "About privatization of the state-owned and utility property" (for sales objectives), "About lease of the state-owned and utility property" (for the purposes of lease).

Article 4. Subjects of management of objects of state-owned property

1. Subjects of management of objects of state-owned property are:

Cabinet of Ministers of Ukraine;

the paragraph third is excluded;

the central executive body providing forming and realizing state policy in the field of management of objects of state-owned property;

the ministries, other executive bodies and the state collegiate organs (further - authorized bodies);

Fund of state-owned property of Ukraine;

the bodies providing activities of the President of Ukraine, the Verkhovna Rada of Ukraine and the Cabinet of Ministers of Ukraine;

the bodies exercising control of state-owned property according to the powers determined by the separate laws;

the national economic associations, the state-owned holding companies, other state economic organizations (further - economic structures), the state company, organization, the organization or economic society, 100 percent of shares (shares) directly or indirectly belonging to the state.;

National academy of Sciences of Ukraine, industry academies of Sciences.

According to the decision of the Cabinet of Ministers of Ukraine the National academy of Sciences of Ukraine, national industry academies of Sciences of Ukraine, and in the cases determined by the law - also state company exercise control of objects of state-owned property regarding accomplishment of powers of the public partner (concessor) of rather existing objects of state-owned property within public and private partnership, including concession, according to the Law of Ukraine "About public and private partnership" and the Law of Ukraine "About concession".

Economic societies which more than 50 percent of shares (shares) belong to the state or other economic society which more than 50 percent of shares (shares) belong to the state exercise control of objects of state-owned property regarding accomplishment of powers of the public partner (concessor) within public and private partnership, concession according to the Law of Ukraine "About public and private partnership" and the Law of Ukraine "About concession".

2. The state-owned managing holding company has the status of authorized body of management concerning objects of management of state-owned property which are transferred to its authorized capital and the authorized capital of its corporate enterprises.

Article 5. Powers of the Cabinet of Ministers of Ukraine in the field of management of objects of state-owned property

1. The Cabinet of Ministers of Ukraine is the subject of management determining objects of management of state-owned property concerning which performs functions on management and also objects of management of state-owned property, power by management of which are transferred to other subjects of control determined by this Law.

2. Exercising control of objects of state-owned property, the Cabinet of Ministers of Ukraine:

1) determines the executive bodies and the state collegiate organs performing functions on management of objects of state-owned property;

2) is established by procedure for transfer of objects of state-owned property to the subjects of management determined by this Law;

3) the Item 2) of part 2 of Article 5 is excluded;  

4) determines conditions of creation and activities of economic structures;

5) makes the decision on creation, reorganization and liquidation of economic structures and determines the authorized bodies of management exercising control of their activities;

6) No. 3587-IX Is excluded according to the Law of Ukraine of 22.02.2024

7) makes the decision on creation, reorganization and liquidation of the state companies and determines the central executive bodies which management sphere they treat;

8) makes the decision on transfer according to the law of objects of state-owned property to utility property, agrees to transfer of objects from utility in state-owned property;

9) it is excluded;

10) it is excluded;

11) it is excluded;  

12) it is excluded;  

13) it is excluded;  

Accepts 14) for representation of the central executive body which provides forming and realizes state policy in the field of economic development of Ukraine of the decision on delegation of power on management of corporate laws of the state to authorized bodies of management and economic structures;

Develops 15) and signs the international agreements of Ukraine concerning objects of state-owned property of Ukraine according to the legislation;

16) appoints unscheduled inspections of use of objects of management of state-owned property and establishes procedure for their carrying out;

16-1) determines criteria according to which formation of the supervisory board is obligatory at the state unitary enterprises (except the companies of defense industry complex) and, taking into account the laws of Ukraine, in economic societies in which authorized capital more than 50 percent of shares (shares) belong to the state;

17) establishes criteria of effective management of objects of state-owned property and procedure for their application;

17-1) No. 3587-IX is excluded according to the Law of Ukraine of 22.02.2024

17-2) approves requirements to independent members of the supervisory boards of the state unitary enterprises and economic societies in which authorized capital more than 50 percent of shares (shares) belong to the state;

17-3) determines essential terms of the contract which consists with the administrator of electronic trading system and the operator of the electronic platform legal entity having the right to use electronic platform (except the agreement signed with the administrator of electronic trading system, the administrator of electronic trading system for projects of concession on housing construction with prethreshold value and the operator of an electronic trading platform according to the Law of Ukraine "About concession");

17-4) approves policy of state-owned property;

18) is determined by procedure:

a) control of accomplishment of functions on management of objects of state-owned property;

b) the directions of the funds determined by the Government budget of Ukraine for financing of the expenses connected with the redemption of shares (shares) of secondary issue of the economic organizations with corporate laws of the state, and measure concerning restructuring, pre-judicial sanitation and other measures concerning functioning of objects of public sector of economy;

c) contributions to the government budget of part of net profit (income) by the state unitary enterprises and their associations (within the state dividend policy);

in-1) payment payment by installments on payment by economic societies in which authorized capital 50 and more percent of shares (shares) belong to the state, dividends in the government budget (within the state dividend policy);

d) competitive selection of heads of the state unitary enterprises, chairmen of executive bodies of economic societies in which authorized capital more than 50 percent of shares (shares) belong to the state, in which formation of the supervisory board is not obligatory according to the law, and also in which formation of the supervisory board is not provided by the charter, with respect for the principles of collective suitability, variety of structure, equality of requirements, professionalism, openness and transparency;

ґ) compensations and remunerations of heads of the state unitary enterprises, chairmen of executive bodies of economic societies in which authorized capital more than 50 percent of shares (shares) belong to the state (for joint-stock companies - taking into account article 39 of the Law of Ukraine "About joint-stock companies") in which formation of the supervisory board is not obligatory according to the law and also in which formation of the supervisory board is not provided by the charter;

e) the subitem д) Item 2) of part 2 of Article 5 is excluded;  

e) the subitem е) Item 2) of part 2 of Article 5 is excluded;  

є) creation and maintaining the Unified register of objects of state-owned property;

g) the subitem е) Item 2) of part 2 of Article 5 is excluded;  

h) carrying out inventory count of objects of state-owned property;

i) No. 3587-IX is excluded according to the Law of Ukraine of 22.02.2024;

і) orders assets of the state economic organizations;

ї) the subitem ї) Item 2) of part 2 of Article 5 it is excluded;  

й) the subitem й) Item 2) of part 2 of Article 5 is excluded;  

j) carrying out annual state financial audit of activities of subjects of managing of public sector of economy;

k) the conclusion the state companies, organizations, the organizations, and also economic societies in which authorized capital more than 50 percent of shares (shares) belong to the state, in which formation of the supervisory board is not obligatory according to the law, and also in which formation of the supervisory board is not provided by the charter, cooperation agreements and property management;

l) it is excluded;

m) delegations of power on management of corporate laws of the state to appropriate subjects of management;

o) transformation of the state companies to joint-stock companies, limited liability companies which 100 percent of shares (shares) in the authorized capital belong to the state;

o) cessions of property in lease;

p) implementation of expenses by subjects of managing of public sector of economy in case of non-confirmation (nonagreement) of annual financial plans in accordance with the established procedure;

r-1) annual approval by the central executive body providing forming and realizing the state financial, budget and debt policy, in some cases - with additional participation of the Cabinet of Ministers of Ukraine, offers of governing bodies of the state unitary enterprises, general meeting of economic societies in which authorized capital more than 50 percent of shares (shares) belong to the state which are subjects of natural monopolies or the planned settlement amount of net profit of which exceeds 50 million hryvnias, rather separate financial performance, namely profit ratios, liquidities and solvencies, and also amounts of payments for benefit of the state, budget financing and quasifiscal transactions which will join in leaf of expectations of the owner, and also financial, strategic and investment plans of such companies and economic societies;

r-2) approval by the central executive body providing forming also realizes the state financial, budget and debt policy, determination of methods of calculation of size of reserve of doubtful debts (reserve of the expected credit losses) and method of determination of coefficient of doubtfulness within accounting policies of the state unitary enterprises and economic societies in which authorized capital more than 50 percent of shares (shares) belong to the state which are subjects of natural monopolies or the planned settlement amount of net profit of which exceeds 50 million hryvnias;

c) No. 3587-IX is excluded according to the Law of Ukraine of 22.02.2024

r) carrying out competitive candidate screen to position of the independent member of the supervisory board of the state unitary enterprise and their purpose, and also carrying out competitive candidate screen to position of the independent member of the supervisory board of economic society in whose authorized capital more than 50 percent of shares (shares) belong to the state, the independent members of the supervisory board offered by the subject of management of objects of state-owned property before election to position;

s) promulgation of information on activities of the state unitary enterprises and economic societies in which authorized capital more than 50 percent of shares (shares) belong to the state and also economic societies, 50 and more percent of shares (shares) of which belong to economic societies, the share of the state in which constitutes 100 percent;

t) determination and approval of candidacies of representatives of the state which are appointed in the supervisory boards of the state unitary enterprises and those which participate in general meeting and are chosen in the supervisory boards of economic societies in which authorized capital more than 50 percent of shares (shares) belong to the state;

x) No. 3587-IX is excluded according to the Law of Ukraine of 22.02.2024

v) No. 3587-IX is excluded according to the Law of Ukraine of 22.02.2024

c-1) the reporting of the supervisory board before authorized body of management of the state unitary enterprise, general meeting of economic society in which authorized capital more than 50 percent of shares (shares) belong to the state (for joint-stock companies - taking into account article 70 of the Law of Ukraine "About joint-stock companies"), about accomplishment of the strategic plan of development, about achievement briefly - and the medium-term financial, operational and non-financial purposes of its activities determined in the letter of expectations of the owner;

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