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Azerbaijan establishes Transport and Communications Holding - decree

Politics Materials 7 November 2024 18:24 (UTC +04:00)
Ali Gasimov
Ali Gasimov
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BAKU, Azerbaijan, November 7. President of the Republic of Azerbaijan Ilham Aliyev has signed a decree on establishing the Azerbaijan Transport and Communications Holding and resolving some related issues, Trend reports.

Guided by paragraph 32 of Article 109 of the Constitution of Azerbaijan, in order to improve the work of government institutions operating in the field of transport and communications, including to increase economic efficiency and create a flexible management system that meets modern requirements for increasing the profitability of the state budget, the decree envisions to:

1. establish the "Azerbaijan Transport and Communications Holding (AZCON)" public legal entity;

2. approve the list of state institutions, as well as business entities and public legal entities with state shares, to be transferred to the management of the "Azerbaijan Transport and Communication Holding (AZCON)" public legal entity;

3. determine that:

3.1. "Azerbaijan Transport and Communication Holding (AZCON)" (hereinafter referred to as the holding) public legal entity is a public legal entity operating in the field of governance in accordance with unified principles for state enterprises, commercial companies, and legal entities of public law with a state share (hereinafter referred to as state enterprises), transferred to its management, to improve their operations, enhance competitiveness, and financial stability;

3.2. the overall management of the holding's activities is carried out by the Supervisory Board, and the current management is conducted by the Executive Director.

3.3. except in cases established by the President of the Republic of Azerbaijan, the Holding resolves issues referred to the exclusive powers of the highest governing body of state enterprises, subject to transfer to its management under part 2 of this Decree, in coordination with the President of the Republic of Azerbaijan.

3.4. The Supervisory Board of the Holding:

3.4.1. approves the budgets of income and expenses for state enterprises transferred to its management;

3.4.2. disposes of the funds received from the activities of the state enterprises transferred to its management;

3.4.3. assesses the profitability of the state enterprises transferred to its management based on the analysis of their profitability indicators, and monitors the implementation of income and expenditure budgets.

3.5. members of the supervisory boards of the state enterprises transferred to the Holding's management, including their leaders, are appointed and dismissed by the Holding's Supervisory Board (for entities where the President of Azerbaijan appoints the head of the executive body, this is done in coordination with the President of Azerbaijan).

3.6. the charter capital of the holding is 10 million manat ($5.9 million) and is formed from the funds paid by the state enterprises transferred to its management.

4. the expenses for the organization and provision of the holding’s activities are formed from the following sources:

4.1. from the funds paid to the Holding by the state enterprises transferred to its management (in the amount and order established by the President of Azerbaijan for each enterprise);

4.2. from other sources not prohibited by law.

5. The exercise of the founder's powers of the holding is entrusted to:

5.1. the President of Azerbaijan:

5.1.1. approves the charter and determine the amount of the authorized capital, and their amendments;

5.1.2. establishes governing bodies;

5.1.3. appoints and dismisses members (including the Chairman) of the Supervisory Board;

5.1.4. appoints and dismisses the Executive Director;

5.1.5. abolish and reorganizes the holding.

5.2. The holding:

5.2.1. resolves issues referred to Article 8.2 of the law of Azerbaijan "On public legal entities", except as noted in paragraph 5.1 of this decree.

6. The Cabinet of Ministers of Azerbaijan:

6.1. prepares and submits proposals to the President of Azerbaijan regarding the improvement of regulatory legal acts related to the establishment of the holding within five months;

6.2. applies to the Ministry of Economy of Azerbaijan for the state registration of the holding in accordance with the law of Azerbaijan "On state registration and the state registry of legal entities", within three days from the approval of the charter;

6.3. resolves other issues arising from this decree.

7. The Ministry of Digital Development and Transport of Azerbaijan:

7.1. prepares and submits the draft charter of the "Azerbaijan Transport and Communication Holding (AZCON)" public legal entity to the President of the Republic of Azerbaijan within one month;

7.2. takes necessary measures to resolve other issues arising from this decree.

8. exclude parts 2-5, 16, and 16-1 of the "List of state companies and enterprises, as well as commercial companies with a state share, to be transferred to the management of the Azerbaijan Investment Holding", approved by the Decree of the President of Azerbaijan dated November 5, 2020, No. 1174 (Collection of Legislation of Azerbaijan, 2020, No. 11, Article 1343 (Volume I)).

9. exclude parts 2 and 3 of the "List of State Enterprises where Private Investments are to be Attracted," approved by the Decree of the President of the Republic of Azerbaijan dated August 31, 2023, No. 4078 (Collection of Legislation of Azerbaijan, 2023, No. 8 (Book I), Article 1237 (Volume I)).

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