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The purpose of the Law is to establish privatisation of the state-owned and municipal property for cash. Privatisation objects may be transferred into private ownership only in compliance with this Law. Shares and other property owned by the state or municipalities may be transferred into the ownership of other persons only under this Law, unless other laws provide otherwise.The State Property Fund is designated as the lead agency for privatisation. Municipal councils shall have the right to refrain from setting up said municipal property privatisation institution and to authorize the mayor to conclude an agreement with the Property Fund concerning privatisation of objects owned by the municipality. The Property Fund shall: 1) draft the list of privatisation objects and submit it to the Government for approval; 2) establish the method of privatisation and terms and conditions of privatisation of a specific object; 3) hold tenders in order to choose experts for the performance of privatisation tasks (including valuation of privatisation objects) and contract them for the fulfilment of the tasks; 4) form a commission for assessing the value of the privatisation object and for fixing the initial selling price; 5) restructure enterprises controlled by the state, where such restructuring will enhance its privatisation possibility or increase the selling price of the privatisation and carry out various other tasks relative to privatisation. There shall be a central controlling organ called the Privatisation Commission and Municipal Property Privatisation Commissions shall be set up on the decision of municipal councils. The Act further defines procedures of privatisation and settlement of disputes.
