The Law on entrusted administration of state property has come into force in Turkmenistan
The official Turkmen press has published today the new Law of Turkmenistan «Entrusted administration of state property». it allows legal bodies to incur management of state enterprises and also state assets and shares in funds of economic and joint-stock companies.
The law urged to raise efficiency and profitability from state property use, to promote attraction of internal and external investments, improvement of economic and financial condition of property transferred to the entrusted administration.
The legal persons operating state property can count on reception of compensation at the rate to 20 % from the profit received within execution of the corresponding contract.
The state property can be transferred to the entrusted administrator both on a competitive basis, and by direct transfer. The entrusted administrator should have experience not less than three years, be profitable following the results of past two years, and should also have no debts in the State budget and credit institutions.
The entrusted administrator should possess assets at a rate of not less than 50 % from market cost of transferred state property for indemnification in case of causing damage to it.
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