Law of the Republic of Belarus No. 239-Z of January 03, 2023 “On issues of transfer to temporary external management” has been published

Today the Law of the Republic of Belarus No. 239-Z of January 03, 2023 “On issues of transfer to temporary external management” has been published.

According to this Law, Belarusian legal entities, shareholders of which are persons from foreign countries, can be placed under temporary external management by the decision of the executive committee.

The objectives of temporary external management are to exclude unjustified termination of the activities of organizations, causing damage to their labor collectives and ensuring the normal break-even operation of organizations.

Transfer to temporary external management is possible: (a) if the management bodies have actually terminated the management of the organization; (b) if the management bodies carry out economically unjustified actions that may lead to the actual termination of the activity, liquidation or bankruptcy of the organization, causing damage to the organization; (c) in other cases determined by the Council of Ministers of the Republic of Belarus.

Temporary external management is not introduced in relation to organizations that are in the process of liquidation or bankruptcy.

The powers of the executive body are transferred to the manager. The powers of other management bodies of the organization may also be transferred, with the exception of the powers to make a decision on reorganization or liquidation. The powers of the management bodies are suspended for the period of temporary external management. The term of temporary management can be up to 18 months.

The law comes into force 10 days after publication. The procedure for transfer to temporary external management will be established by the Council of Ministers.