Approved by the Protocol dated October 07, No. 01 of the Competition Commission for the sale of properties acquired and documented in accordance with the existing legislation in return of  troubled assets purchased by “Aqrarkredit” Closed Joint Stock Company Non – banking Credit Organization from “International Bank of Azerbaijan” Open Joint Stock Company and giving them to the management of external managers.

 

RULES

for conducting auctions on the sale of properties acquired and documented in accordance with the existing legislation in return of  troubled assets purchased by “Aqrarkredit” Closed Joint Stock Company Non – banking Credit Organization from “International Bank of Azerbaijan” Open Joint Stock Company or giving them to the management of external managers

 

  1. General provisions

1.1. These Rules define the procedures for conducting auctions on the sale of property or giving them to the management of external managers and making decision related to the sale of property or giving them to the management of external managers by the Competition Commission established by the resolution of the Cabinet of Ministers of the Republic of Azerbaijan dated July 22, 2016 No. 252 (hereinafter – Competition Commission) for the purposes of the solution of a number of issues in the process of the sale of movable and immovable properties (hereinafter – property) acquired and documented in accordance with the existing legislation in return of  overdue debts on the troubled assets given to the management of “Aqrarkredit” CJSC (hereinafter – Aqrarkredit)  related to the fulfillment of duties arising out of resolution of the Cabinet of Ministers of the Republic of Azerbaijan dated July 22, 2016 No. 252 on the establishment of the Competition Commission for the sale of properties acquired and documented in accordance with the existing legislation in return of  troubled assets purchased by “Aqrarkredit” Closed Joint Stock Company Non – banking Credit Organization from “International Bank of Azerbaijan” Open Joint Stock Company and giving them to the management of external managers.

1.2. These Rules are compiled in accordance with the Civil Code of the Republic of Azerbaijan, other laws of the Republic of Azerbaijan, Decree of the President of Azerbaijan Republic dated July 15, 2015 No. 570 “On rehabilitation measures related to the preparation of state – owned shares of “International Bank of Azerbaijan” Open Joint Stock Company for the privatization”, and the Resolution of the Cabinet of Ministers of the Republic of Azerbaijan dated June 26, 2016 No. 252.

1.3. These Rules shall not apply to the direction of deduction to the mortgaged property, sale of property as a result of bankruptcy, as well as, direct sale of property on the basis of court order that is legally effective.

  1. Decision on the sale of property or giving it to the management of external manager

2.1. Decision on the sale of property or giving it to the management of external manager shall be adopted by the Competition Commission on the basis of a reasonable representation of Aqrarkredit.

2.2. While adopting a decision on the sale of property or giving it to the management of external manager, the followings shall be taken into consideration:

2.2.1. Taking into account the clause 2.2.2 of these Rules, the property firstly shall be put up for sale by means of auction. If the property is not sold through auction according to these Rules, the  Competition Commission shall make a decision on giving the property to the management of external managers.

2.2.2. Assets specified by the resolutions of the Cabinet of Ministers of the Republic of Azerbaijan, as well as, property which is considered to be less attractive in non – commercial or commercial terms on the basis of the representation of Aqrarkredit shall be sold or given to the external managers according to direct contracts by the decision of  Competition Commission.

  1. Valuation of property

3.1. Property shall be evaluated by the selected assessor according to these Rules before being put into sale through auction and its initial sales price shall be determined.       

3.2. The property valuation shall be implemented by a prominent assessing organization. The selection of the assessor is implemented in the following stages:

3.2.1. In the initial stage, the list that includes at least five assessing organizations is compiled by determining the compliance of specialties of assessors.

3.2.2. In the second stage, suggestions are taken from assessors included in the list of assessors for the purposes of specific property valuation.

3.3. Announcement is published on the official website of Aqrarkredit, public newspaper and other mass media to determine compliance of specialties of assessors. Announcement is given thirty days prior to the submission of documents. Announcement on website shall be placed on the website until the last day of the submission of documents, whereas announcement on official public newspaper and other mass media shall be given repeatedly twenty  and ten days prior to the last day of the submission of documents. The following information shall be given in the announcement:

3.3.1. brief information on the aim of the selection of assessor, types of properties which are needed to be assessed;

3.3.2. document and information to be presented by assessor;

3.3.3. term (deadline) and address for the submission of documents;

3.3.4. Name, position, telephone number and email address of contact person;

3.3.5. giving information to assessors on the results of the verification of specialty compliance;

3.3.6. Criteria for assessing suggestions.

3.4. Assessor is required to submit the below mentioned documents and information:

3.4.1. copies of documents certifying state registration of assessor (registration certificate, extract from register);

3.4.2. Accounting balance for the last 2 years;

3.4.3. Information on the experience of assessor in the field of valuation (term of activity in valuation, most large scale operations in valuation, types of valuation properties, information on the last evaluated work and term of their implementation);

3.4.4. Descriptive information on the valuation standards and methodology applied by assessor on the different types of property;

3.4.5. Names, positions of employees to be involved in the evaluation by Aqrarkredit, copies of documents confirming their qualifications, information on work experience, contact phone numbers and e-mail address;

3.4.6. Name, position of senior employee appointed to contact with Aqrarkredit, copy of document confirming qualification, information on work experience, contact phone numbers and e-mail address;

3.4.7. Information on local  and (or) international membership (associations, societies) of assessor on relevant field;

3.5. Aqrarkredit may send a direct request to the assessing organizations with experience in this field for the submission of documents. Information specified in the clause 3 of these Rules must be mentioned in the request.

3.6. If assessors meet the following requirements, the qualification compliance is considered to be determined and they are added to the list of assessors:

3.6.1. Assessing company shall have minimum 2 years of experience in relevant field;

3.6.2. Assessor’s experience on the type, volume of property which is put into the sale, assessment of property in the economic field;

3.6.3. Minimum 1 year professional experience of assessor’s specialists in the field of evaluation;

3.6.4. Assessor’s capabilities and experience in applying advance assessment standards and methodology;

3.6.5. non – availability of negative information on assessor (information on incompetence or low level of professionalism of  assessor or specialists suggested by him/ her, criminal cases against employees, owing to state budget etc.)

3.7. “Aqrarkredit” evaluates the suggestions of assessing organizations and submits the results to the Competition Commission. The list of assessing organizations is approved by Competition Commission. “Aqrarkredit” gives information to all assessors taking part in the verification of qualification compliance on their success or failure from this process.

3.8. Aqrarkredit sends request on making suggestion on the assessment of the property to all organizations included in the list of assessors immediately after making decision by Competition Commission on putting any property into the sale.

3.9. The following information is mentioned in the request:

3.9.1. detailed description of the property (composition of its main parts, purpose, area and other dimensions and characteristics);

3.9.2. address of property;

3.9.3. making suggestions on fees and costs of assessor for the evaluation of property (if fee is not included);

3.9.4. Information to be mentioned in the suggestion according to the clause 10 of these Rules;

3.9.5. address for accepting  suggestions and contact person's name, title, telephone number and e-mail address;

3.9.6. deadline for accepting  suggestions;

3.9.7. winning assessor and draft contract to be signed with Aqrarkredit.

3.10. Assessing organizations shall submit their suggestions in which the following information include to Aqrarkredit until the deadline mentioned in the request:

3.10.1. the amount of fee for services on the property valuation 9as well as, answering the questions of Aqrarkredit and if required, the Competition Commission, taking into consideration their terms and conditions) and its calculation procedure, limitation of reimbursable costs (if not included in the fee);

3.10.2. standards and assessment method applied to the assessment of property and its reasoning;

3.10.3. specialists involved for the implementation of assessment (specialists mentioned in the verification of qualification) and if special knowledge is required for any field, names, qualification and experience involved that have such special knowledge;

3.10.4. Time schedule of implementation of assessment, as well as, submission of initial report to Aqrarkredit, terms for coordinating it with Aqrarkredit (if required, Competition Commission) and as a result of it, submission of final report.

3.10.5. Representation of assessor on the independence of assessor and non – existence of cases preventing the objective assessment of property;

3.10.6. Notes on the draft contracts to be signed with Aqrarkredit.

3.11. If term expires for receiving suggestions from assessing companies, Aqrarkredit, conducts a comparative analysis of suggestions from assessing companies and informs all of them by selecting the winner.

3.12. If required, Competition Commission may approve methodological instruction on the assessment of suggestions.

3.13. Contract between  Aqrarkredit and an assessor whose suggestion has been accepted shall be signed for the provisions of services of relevant property valuation. While negotiating on contract, Aqrarkredit, shall be entitled to discuss the issue of application of discount on the price suggest by assessing company. If contract is not signed for any reason with winning assessor, Aqrarkredit, shall be entitled to start negotiations with the assessing company that is on the second rank.

3.14. Aqrarkredit shall enable assessing organization to access the area where property is located and the property to inspect property for the purpose of property valuation, as well as, conditions shall be established for getting acquainted with all documents referring to property, if such documents are at other companies’ or state authorities hands, contact with those companies and authorities to ensure the assessor to access them (except for the cases when such documents refer to the state or investigation secret or documents taken for criminal case).

3.15. After assessing organization prepares the draft report, it shall discuss it with Aqrarkredit, if necessary with Competition Commission and prepare the final version of report taking into account the comments.

3.16. Assessing organization, conducting assessment in the term specified in the suggestion, shall present report on the results of assessment. The followings shall be mentioned in the report: 

3.16.1. Detailed information on the assessed property;

3.16.2. rules for conducting assessment and calculation of price, intended and not intended factors, applicable assessment standards and methods;

3.16.3. price of property (or cost limits);

3.16.4. list of documents referring to property;

3.16.5. list of references;

3.16.6. specialists conducting assessment and other specialists from whom special knowledge is required on any field.

3.17. The report shall be signed by senior specialists conducting assessment, senior employee for contact and the head of assessing organization and approved by the seal of assessing organization. 

3.18. Aqrarkredit shall submit the report reflecting the following information to the Competition Commission within five days after the submission of the report on the assessment:

3.18.1. detailed description  of the process on the selection of assessing organization (as well as, suggestions given by assessing organizations, their analysis process and explanation of main factors on the selection of assessing organization declared to be winner);

3.18.2. Fee to be paid to assessing organization for services rendered by it;

3.18.3. Initially suggested sales price of property.

3.19. report prepared on the property valuation of assessing organization shall be added to the report prepared by Aqrarkredit for Competition Commission. Report shall be presented to the Chairman of Competition Commission according to the number of members of Competition Commission (together with attachments). The chairman of Competition Commission shall ensure the submission of copies of report to other members of Competition Commission.

3.20. After the submission of Competition Commission to all members of Competition Commission, Competition Commission discussing the report at its meeting resolves the issue of approval of initial sales price of property and a decision is adopted on the sale of property through an auction. If the cases mentioned in the clause 2.2.2 exist, a decision is adopted on giving or selling property directly to external manager on the basis of contract. If  Competition Commission doesn’t approve the sales price, the property valuation shall be re – executed. In this case, valuation shall be suggested to the second company in the list of assessors.

  1. Conducting auction on the sale of property

4.1. Property is put into auction by Aqrarkredit after initial sales price of property is approved by Competition Commission. Sales is implemented through an open auction in the manner specified in the articles 414 – 416 of Civil Code of the Republic of Azerbaijan. Advance payment shall be made in the amount of 10% of initial sales price of property to take part in the auction.

4.2. Auctions are conducted by specialized auction organizations. The selection of specialized auction organizations is implemented in the following stages:

4.2.1. In the initial stage, the compliance of auction organizations is determined and a list in which at least five auction organizations include;

   4.2.2. In the second stage, suggestions are taken from organizers included in the list of auction organizers for the purposes of specific property valuation. 

4.3. Announcement is published on the official website of Aqrarkredit, public newspaper and other mass media to determine compliance of specialties of auction organizer. Announcement is given thirty days prior to the submission of documents. Announcement on website shall be placed on the website until the last day of the submission of documents, whereas announcement on official public newspaper and other mass media shall be given repeatedly twenty  and ten days prior to the last day of the submission of documents. The following information shall be given in the announcement: 

4.3.1. types of properties which are needed to be sold through auction;

4.4.2. document and information to be presented by auction organizer;

4.3.3. term (deadline) and address for the submission of documents;

4.3.4. Name, position, telephone number and email address of contact person;

4.3.5. giving information to assessors on the results of the verification of specialty compliance.

4.4. Auction organizer is required to submit the below mentioned documents and information:

4.4.1. copies of documents certifying state registration of auction organizer (registration certificate, extract from register);

4.4.2. Accounting balance for the last 2 years;

4.4.3. Information on the experience of auction organizer  in the field of valuation (term of activity, most large scale auctions, types of properties old through auction, information on the last auction and term of their implementation);

4.4.4. Auction rules of auction organizer; 

4.4.5. Names, positions of employees to be involved in the organization of auctions, copies of documents confirming their qualifications, information on work experience, contact phone numbers and e-mail address;

4.4.6. Name, position of senior employee appointed to contact with Aqrarkredit, copy of document confirming qualification, information on work experience, contact phone numbers and e-mail address.

4.5. Aqrarkredit may send a direct request to the auction organizer  with experience in this field for the submission of documents. Information specified in the clause 3 of these Rules must be mentioned in the request.  

4.6. If auction organizer  meet the following requirements, the qualification compliance is considered to be determined and they are added to the list of auction organizer  :

4.6.1. Auction organizer  shall have minimum 2 years of experience in relevant field;

4.6.2. Auction organizer’s experience on the  organization of relevant auctions (including type, volume, cost and economic field of property whch is put into the auction);

4.6.3. At least 1 year of professional experience of auction organizer specialists in the appropriate field;

4.6.4. Application opportunities and experience of advanced auction methods of auction organizer; 

4.6.5. The absence of negative information about the auction organizer (information about the incompetence of auction organizer or the specialist offered by him or information about low level of experience, criminal proceedings against his/her employees, having debt to the state budget etc.).

4.7. “Aqrarkredit” estimates the suggestions of auction organization and submits the results to the Competition Commission. The list of the organizers of the auction shall be approved by the Competition Commission. Aqrarkredit informs all the auction organizers participating in inspection of conformity about the fact of passing the stage of checking qualification compliance.

4.8. After the approval of the sale price of the property Aqrarkredit sends a request to issue a proposal to hold auction on the sale of property to those organizations entered into the list of auction organizers.

4.9. The followings are indicated in the survey:

4.9.1. A detailed description of the property (The composition, appointment, area, dimensions and other features of its main parts),

4.9.2. The address of the property,

4.9.3. Fees and expenses of the auction organizer for the organization and conduct of the auction,

4.9.4. The conditions of payment of fees and expenses at the expense at the expense from the sale of property,

4.9.5. Information to be noted in this suggestion according to Article 10 of this Rules,

4.9.6. The address and name of the related person, his/her occupation, telephone number and e-mail address for adoption of proposal,

4.9.7. Deadline for the adoption of proposal;,

4.9.8. The project of the contract to be concluded between the winner auction organizer and Aqrarkredit.

4.10. The auction organizers should submit suggestions containing the following information to the Aqrarkredit until the deadline specified in the survey:

4.10.1. The amount of the fee and its calculation procedure for the services on the organization and conduct of the auction (as well as, answering questions of Aqrarkredit and if required Competition Commission, and taking account their statement), limitation of recoverable costs (if it is not included in the fee);

4.10.2. The rules for the conduction of the auction;

4.10.3. Specialists involved in the organization and conduct of the auction (Specialists shown during inspection of the qualification);

4.10.4. The time schedule of the auction, besides, time schedule of the first auction and if needed, time schedule of the repeated auctions;

4.10.5. Statement by the auction organizer on the absence of the circumstances preventing independence of the auction organizer;

4.10.6. The notes on the draft of the agreement to be concluded with Aqrarkredit .

4.11. At the end of the period for the receipt of proposals, carries out a comparative analysis of the proposals received from the organizers of the auction with the list approved by the Competition Commission and by selecting the winning proposal gives information to all auction organizers who gave proposal about this fact.

4.12. If demanded, the Competition Commission can confirm methodological guidance on the evaluation of the proposals.

4.13. An agreement should be concluded between the Aqrarkredit and auction organizer whose proposal was accepted on the sale of the relevant property about the provision of services on the organization and conduct of the auction. During conducting negotiations on the contract, Aqrarkredit has the right to discuss the issue of privilege for the price suggested by the participant of the auction.  If no agreement is concluded with the winning auction organizer for any reason, then Aqrarkredit has the right to start the negotiations on the agreement with the auction organizers that won second place. 

4.14. For the purpose of conducting the auction and in order to review the property, Aqrarkredit should create opportunity for the auction organizer for the access to property and land where the property is located, besides he should create opportunity to become familiar with all the documents in its possession on the property, and if such documents are in other organizations or state authorities then he should create opportunities to get acquainted with those documents by maintaining contact with the organization and the authorities (except in cases where these documents belongs to public or investigation secret, or to the documents taken on the criminal case).

4.15. During the organization and conduction of the auction, auction organizer is acting on its own behalf.

4.16. Auction organizer shall give notice about the implementation of auction 30 days prior to the planned auction on its website, on the website of Aqrarkredit, at least in three official state newspaper and in other widespread mass. A notice posted on the website should be given up to date of the auction. A notice given in the official government newspapers and other media should be given every ten days until the day of the auction.

4.17. The following information should be indicated in the notification about the conduction of the auction:

4.17.1. Detailed information on the property put up for auction, as well as the information about the location and condition of the property;

4.17.2. The initial selling price of the property put up for auction;

4.17.3. Conduction of the auction through an open auction;

4.17.4. The date and time of the auction;

4.17.5. The address where the auction will take place;

4.17.6. The procedure for conducting the auction, as well as the rules for the clearance of the participation in the auction, procedure for determining the winner of the auction and other information prescribed by law;

4.17.7. The conditions and period for the payment of the price determined in the auction by the person winning the auction;

4.17.8. The amount, payment procedure and timing of down payment determined to ensure the obligations of the persons participating in the auction when they won the auction.

4.18. The number of participants should be no less than 3 persons in order the auction should be considered valid.  Participant, who offered the highest price at auction is announced as the winner of the auction. Purchase of the property by the winner  is governed by the rules of the closure of agreement in the auction in the Civil Code of the Republic of Azerbaijan.

4.19. If less than three persons are involved in the auction or if the winner refuses to get the property, then the auction is considered to be ineffective and the property is given to the next (second) auction.  Subsequent auction should be held within 10 days from the date of the first auction. In this case, auction organizer should give notification about the conduction of the subsequent (second) auction and the notification should be repeated every 5 days. Taking into account the rules of this paragraph, the notification shall be given in the manner set forth in paragraphs 16 and 4.17 of these Rules and the fact that the auction is the subsequent auction should be mentioned.

4.20. In the next (second) auction the property should be put on an auction with the initial selling price of property. If only one person participates in the repeated auction, then this auction is considered valid, if no one participates in the auction or if the winner refuses to get the property then the auction is considered to be inefficient and the property is put on the next (third) auction. If the next (second) auction does not take place, then auction organizer should held the next (third) auction   in the manner and within the time periods specified by paragraph 4.19 of this Regulations and shall give the notification about this.

4.21. In the next (third) auction held about the sale of the property, the property is put on an auction with 10% lower than its initial selling price. If only one person takes part in the next (third) auction then the auction is considered valid, if no one takes part in the auction or the winner refuses to get the property then the auction is conserved to be inefficient and the property is put on the next (fourth) auction. If the next (third) auction does not take place, then the auction organizer should held the next (fourth) auction in the manner and within the time periods specified by paragraph 4.19 of these Regulations and shall give notification about this.

4.22. In the next (fourth) auction held about the sale of the property, the property is put on an auction with 25% lower than its initial selling price. If only one person takes part in the next (third) auction then the auction is considered valid, if no one takes part in the auction or the winner refuses to get the property then the auction is conserved to be inefficient and the property is put on the next (fifth) auction.  If the next (fourth) auction does not take place, then the auction organizer should held the next (fifth) auction in the manner and within the time periods specified by paragraph 4.19 of these Regulations and shall give notification about this.  In the notification it should be indicated that it is the last auction.

4.23. In the last auction the property is put on an auction with 10% lower than its initial selling price. If only one person takes part in the next (third) auction then the auction is considered valid and that person is announced as the winner of the auction. If there is no winner in the las auction, then the property is taken out of the auction.

4.24. Every subsequent auction should be held within 10 days from the date of previous invalid auction. The Competition Commission may decide to increase this period in relevant cases (type, the importance of the property, the amount of troubled assets and so on.).

4.25. The auction organizer should prepare a report about the organization, conduction and results of the auction and submit it to the Aqrarkredit.

4.26. By the decision of the Competition Commission up to the purchase of the property put on at the auction instead of troubled assets, natural or legal person (or the legal entity's participants (shareholders)) to be the owner of the property may participate in the auctions organized for the sale of the property as the other participants.

 

  1. Results of selling property in auction

5.1. If property is not sold in the auctions held for its sale, as well as, in the cases specified in the clause 2.2.2 of these Rules, Competition Commission may adopt a decision on the followings according to the representation of Aqrarkredit:

5.1.1. Sale of property in part (being divided or separated) through auction;

5.1.2. Sale of property on the basis of a direct contract;

5.1.3.Giving property to external manager.

5.2. Sale of property in part implies the sale through auction held in the manner specified in the clause 4 of these Rules dividing relevant assets from its composition (for example, land area, machines, production means, plants, etc.). In this case, assessment of parts of property is carried out according to the report of property evaluation, if it is not possible, it is assessed in the manner specified in the clause 3 of these Rules.

5.3. When a decision is made on the direct sale of property, Aqrarkredit shall involve an external advisor for the determination of terms and conditions of direct sale of property (price of property, sales and payment terms etc.). According to the clause 3 of these Rules, an assessor included in the list of the selected assessors can be involved as an external advisor for the sale of property on the basis of a direct contract. The application of an external advisor shall be approved by Competition Commission.

5.4. Conditions specified in the clause 14 of these Rules shall be established for advisor to implement its duties.

5.5. External advisor, after the submission of report on the terms and conditions of property based on a direct contract to Aqrarkredit, shall present suggestions on the sale of property on the basis of a direct contract to Competition Commission by attaching report of advisor. Competition Commission shall make a decision on the sale of property on  the basis of a direct contract taking into account the suggestions of Aqrarkredit and report of external advisor.

5.6. If a decision is made on the direct sale of property, Aqrarkredit shall determine a potential; buyer and develop the draft sale and purchase agreement of property carrying out negotiations with it within the terms and conditions of Competition Commission. Sale and purchase agreement with buyer is concluded only after the approval of application and draft agreement is made by Competition Commission.

  1. Giving property to external manager

6.1.  Properties not sold through auction are given to third party through competition or direct contract by the decision of Competition Commission.

6.2. Properties are given to external managers firstly through competition.

6.3.   When properties are given to the management of external managers through competition, Competition Commission shall:

6.3.1. determine the terms and conditions for giving property to external manager;

6.3.2. assess the suggestions of bidders who have given suggestions (hereinafter- bidders) to take part in competition;

6.3.3. determine the winner of competition and make a decision on signing contract with him/ her;

6.4. When properties are given to external managers through competition, Aqrarkredit shall:

6.4.1. arrange competition;

6.4.2. publish announcement in mass media about competition;

6.4.3. arrange control over the execution of contract;

6.4.4. if terms and conditions of contract are not executed by external manager, ensure taking measures relevant for legislation.

6.5.  When properties are given to management on the basis of competition, relevant announcement is published in mass media at least 30 (thirty) days prior. The followings shall be considered in the announcement:

6.5.1. place, date and time of competition;

6.5.2. list on the composition of properties, technical parameters and information on financial indicators;

6.5.3. requirements for bidders;

6.5.4. list of documents to be presented by bidders;

6.5.5. deadline for the submission of documents;

6.5.6. terms and conditions of competition;

6.4.7. Other requirements determined by Competition Commission.

6.6.  Competition ends with making a decision on the determination of the winner of competition by Competition Commission.

6.7.  If there is no any participant of competition or winner refuses to sign a contract, Competition Commission shall adopt a decision on giving the property to other managers by  a direct contract.

6.8.   When properties are given to external managers by a direct contract, Competition Commission shall:

6.8.1. determine the terms and conditions for giving property to management;

6.8.2. adopt a decision on concluding contract with external manager.

6.9.  When properties are given to external managers by a direct contract, Aqrarkredit shall:

6.9.1. implement organizational works related to giving properties to management;

6.9.2.organize control over the execution of contract;

6.9.3. if terms of contract are not fulfilled by external manager, it ensure to take measures relevant for legislation.

6.10. Properties can be given to external manager – individual and legal entities meeting the follwoign criteria:

6.10.1. having minimum 3 years of experience in the activity of property;

6.10.2. availability of guarantee letter from banks or reputable financial institutions by external manager as a security for the execution of relevant contractual obligations;

6.10.3. manager’s potential to manage the undertaken property.

6.11.   Property is presented to external manager only on the basis of investment program.

6.12.   At least, following information shall be reflected in the investment program:

6.12.1. information enabling to determine the experience and management potential of external manager on the field;

6.12.2. investment plan;

6.12.3. schedule for the fulfillment of obligations on property;

6.12.4. suggested management and organization structure for property;

6.12.5. financial forecasts;

6.12.6. risks and tools for their management.

6.13. Information mentioned in the investment program shall be assessed by external assess or by Aqrarkredit itself and an official opinion shall be submitted to Competition Commission.

6.14. Property’s being given to management is not considered to transfer the ownership to external manager and the ownership of property remains at Aqrarkredit.

6.15. In the following cases, according to the decision of Competition Commission and  contractual terms on the property’s being given to management, property can be sold to manager:

6.15.1. if debt obligations to Aqrarkredit are fully paid on the property being in the management;

6.15.2. it is not possible to sell or give the property given to management to other external manager.

6.16.   When properties are given to external managers on the basis of direct contract or competition, the following requirements shall be reflected for the manager:

6.16.1. payment of troubled asset (debt) referring to property given to management within relevant term;

6.16.2. payment of debts (utilities, for payroll etc. debts) related to the operation of property given to management;

6.16.3. maintenance of functional designation of property;

6.16.4. application of advanced cooperative management principles.

6.17.  Other requirements can be specified in the contract depending on the type, feature, ad complexity, as well as, other factors that can affect their operation.

6.18.  Properties are given to management for the following terms:

6.18.1. short term – until 5 (five) years;

6.18.2. medium term – from five (5) years to ten (10) years;

6.18.3. long term – above 10 (ten) years.

6.17. In each case, specific term for giving property to management is determined by mutual agreement in the contract signed between parties.

6.18. Properties being given to management is documented by contract signed between Aqrarkredit and external manager.

6.19. Contract is signed on the basis of the decision of Competition Commission.

6.20. Contract is a main document that regulates the relations related to the management of properties.

 

28.11.2016 Detailed Gizlət