Disposal of Shares and Stocks — Forms and Actors
The disposal of shares and stocks registered in the name of the state is one of the most institutionally loaded directions of state property management. The law distinguishes three forms of disposal of shares and stocks: privatization, transfer of management rights, and exchange. Each has its own procedural regime, but the common feature is one — the centralization of the decision on the state's side.
Privatization of shares or stocks may be carried out through auction, direct sale and direct sale on the basis of competitive selection. In addition, shares, stocks or stocks represented by certificates may be privatized directly or through an intermediary, by public or private offer, on a recognized foreign stock exchange, or by another form of offer consistent with the practice existing at the relevant time on international capital markets. These special forms allow the state to offer an asset to investors through channels customary for the market.