The National Property Fund of the Slovak Republic

The National Property Fund of the Slovak Republic

The National Property Fund of the Slovak Republic („NPF“) was established as aspecial purpose institution for the purpose of transfering State-owned property to other entities.

It is an independent legal entity which was established in 1991 by an Act of the National Council of the Slovak Republic No. 253/1991 Coll., concerning the role of the organs of the Slovak Republic in the process of transfer of state property to other entities and concerning the NPF.

The transfer of privatised property is executed according to Act No. 92/1991 coll. concerning the conditions of transfer of state property to other entities, in accordance with later legislation on the basis of aprivatisation decision, which includes specific conditions, range and manner of privatisation.

The main role of the NPF is the implementation of privatization projects on the basis of privatization decisions. In the event of adirect sale of property of shares the NPF is responsible for the organization of selective proceedings, or for organizing and conducting public tenders, as well as for the preparation and conclusion of purchase agreements with the buyers of privatized property. When aprivatization is carried out by transferring state property to ajoint stock company, the NPF becomes both the founder and sole shareholder, authorized to transfer these shares to buyers in accordance with privatization decisions.

The property of the NPF primarily includes share of ownership of companies the most important among them are energetic companies, financial resources and receivables gained from the sale of privatised property. Furthermore profits arising from the shareholding of the NPF in enterprises, also make up the NPF´s property. Legally, the property of the NPF is separeted from the property of the state and it may be used only for the purposes specified by law.

The bodies of the NPF include the Presidium , Supervisory Board and Executive Committee. Members of Presidium and Supervisory Board are appointed and recalled by the National Council of the Slovak Republic.

The Presidium is the supreme body of the NPF and includes nine members.

The Presidium is responsible for the elaboration of the proposial for the use of the NPF´s property, the draft Budget of the NPF, the Annual Financial Statements of the NPF and the Annual Report.

The Supervisory Board controls the activities and the financial situation of the NPF, its Presidium an the Executive Committee. The Supervisory Board is made up seven members.

The Executive Committee is astatutory organ of the Fund, guaranteeing the proper operation of the NPF according to the guidelines set by the Presidium. The executive Committee consists of eleven members. The vice-president of the Presidium holds the office of chairperson. The other ten members of the Executive committee are elected by the Presidium, they are responsible for the management of individual sections.

The NPF has been executed all listed activeties from its establishment. In current period the NPF is aimed to Execution of Shareholders´ Rights and other activities concerning to ownership of shares and property. Other sale of the companies or their parts are blocked by the Government of the Slovak Republic. Further possible implementation of privatisation and sale by the NPF depends on the Government decision.