INSURANCE LAW ("Official Herald of the Republic of Serbia", Nos. 55/2004, 70/2004 - correction, 61/2005, 85/2005 - other law, 101/2007, 63/2009 - Decision of the Constitutional Court, 107/2009, 99/2011, 119/2012, 116/2013 and 139/2014 - other law)

Article 1-242*

(Repealed)

Privatization of Insurance Companies 

Article 243 

The subject of privatization is the socially owned and/or state owned capital in insurance companies registered in shares (hereinafter referred to as: the capital).

The insurance companies has the obligation to register the capital from the paragraph 1 of this Article in shares and enter these shares into the Central Register, Depot and Securities Clearing.

The property or part of the property of the insurance company may be sold in the privatization procedure, in the manner and subject to terms and conditions prescribed by the present Law. 

The procedure for the privatization of the capital referred to in paragraph 1 of the present Article shall be initiated by a decision of the Ministry. 

The Deposit Insurance Agency founded under a special law (hereinafter referred to as: the Agency) shall organize and conduct the procedure for the privatization of the capital referred to in paragraph 1 of the present Article. 

The Ministry shall supervise the conducting of the procedure referred to in paragraph 5 of the present Article. 

Article 243a 

In the procedure of privatization, 70% of the socially owned capital which is under the procedure of privatization in the insurance company (hereinafter referred to as: the subject of privatization) shall be sold. 

The Agency shall be authorized to conduct the procedure for the sale of parts of the property of the insurance company operating with socially owned capital if it assesses that the privatization procedure would be conducted more efficiently in that manner. 

The real estate or movables directly employed for the performance of activity of the subject of privatization may not be the subject of sale as defined in paragraph 2 of the present Article. 

The sale of capital, that is property or parts of property referred to in paragraphs 1 and 2 of the present Article, shall be conducted through the public tender method. 

The government shall prescribe the procedure for the sale of capital and property referred to in paragraph 4 of the present Article. 

Article 243b 

The Agency shall conclude a contract on the sale of the capital referred to in Article 243a of the present Law with the buyer. The contract shall be deemed entered into after being signed by the Agency and the buyer. 

The buyer shall obtain ownership of the capital referred to in Article 243a, paragraph 1 of the present Law subject to the provisions of the contract on the sale of capital. 

Article 243c 

The sale and purchase price quoted in the contract on the sale of capital referred to in Article 243b, paragraph 1 of the present Article shall be paid to the credit of the account of the Agency. 

The funds referred to in paragraph 1 of the present Article shall be used to settle sale expenses incurred in the privatization procedure and special compensation realized by signing the agreement on selling the capital and property (provision).

Sale expenses as defined in paragraph 2 of the present Article shall mean the expenses for the engagement of financial and legal advisors in the privatization procedure, fees for the announcement of public invitations and other information of consequence for conducting the privatization procedure, as well as other expenses incurred in the privatization procedure. 

The minister in charge of finances shall decide about the amount of provision referred to in paragraph 2 of this Article. 

Article 243d 

(Deleted)

Article 243e 

The Agency shall pay, to the Republic of Serbia budget account, the funds realized by selling the capital, after the settlement of sale expensessubject to Article 243c paragraph 2 of this Law and assignment of 10% amount of the realized purchase/sale price for the requirements of the insurance guarantee fund. 

The funds referred to in paragraph 1 of the present Article paid to the credit of the Republic of Serbia budget account shall be allocated pursuant to relevant provisions of the law governing privatization. 

Article 243f 

The Agency shall also organize and conduct the procedure for the sale of shares of insurance companies owned by the Republic of Serbia, Fund for the Development of the Republic of Serbia and the Republic Fund for Pension and Disability Insurance. 

The Agency shall organize and conduct the procedure for the sale of other shares of insurance companies when the legal holders of such shares authorize the Agency by a special written contract to conduct the sale of such shares in their name and for their account to a third party. 

The Agency shall conclude a contract on the sale of the shares referred to in paragraphs 1and 2 of the present Article. The contract shall be deemed entered into after being signed by the Agency and the buyer of the shares. 

The shares referred to in paragraphs 1 and 2 of the present Article shall be sold through public tender method subject to the regulation referred to in Article 243a, paragraph 5 of the present Law. 

Article 243g 

The insurance company operating with socially owned and/or state owned capital may not, without prior approval of the Agency, pass decisions on the reduction or increase of capital, reorganization or restructuring, investment, sale of part of property, encumbering of property by pledge of assets or mortgage, long-term lease, composition with creditors, taking or granting of loans or issuance of guarantees, outside the course of regular business operations. 

The decisions passed in breach of the provision of paragraph 1 of the present Article shall be annulled by the Agency. 

Article 243h 

Unless otherwise provided by the present Law, the provisions of the law governing the privatization of socially owned and state owned capital in enterprises and other legal entities , save for the provisions regarding the transfer of capital free of charge, shall be applied to the procedure for the privatization of the capital in insurance companies. 

Article 244-247*

(Repealed)