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The Government of the Republic of Serbia

In the service of citizens

Better protection for small share-holders

Belgrade, 8 December 2005

Serbian Minister of Economy Predrag Bubalo said today that the Bill on the takeover of joint-stock companies will allow better protection for small share-holders, equal treatment of all share-holders and a transparent takeover process of shares.

Predrag Bubalo at today's press conference

Speaking at a press conference held after the Serbian government’s session, Bubalo said that this law that the Serbian government adopted at today’s session is suitable for possibilities in share trading in Serbia, he added that it will go through the parliamentary procedure in the upcoming year.

He explained that what used to be regulated by one law on securities is now being conducted according to three systemic laws, those being the Law on takeover of joint-stock companies, Law on securities and Law on investment funds.

According to Bubalo, the Law on takeover of joint-stock companies regulates conditions for bidding on taking over joint-stock companies and the rights and obligations of participants in the takeover procedure.

Bubalo said that the document is in complete accordance with the Law on economic societies. He added that the one who starts the procedure of takeover must do so for all 100 percent shares, which does not mean that everyone has to sell their shares.

He said that with the aim to create as realistic a picture as possible of the value of shares, it is envisaged that the joint-stock companies whose shares hadn't been traded on an organised securities market three months before the announcement of the intention of takeover cannot be subject to takeover.

He said that small share-holders can, under the same conditions as big share-holders, sell their shares to bidders, thereby making it possible that the state and small share-holders are in an equal position.

He said that the bidder or other persons taking part in the takeover procedure cannot by their activity in the market create any disruption that could lead to an artificial increase or decrease in the value of the shares of the company subject to takeover.

Bubalo said that at today’s session the government brought the decision to request an extension of the permanent agreement with the International Monetary Fund for two months, so that it can fulfil the conditions agreed upon.

He pointed out that the request extends the agreement until February 28th, adding that some of those conditions include the adoption of individual laws and the selection of the privatisation advisor for NIS, for which the last date for bidding expires tomorrow.