Priviatization Models in Serbia

Privatization models in Serbia defined by the Law on privatization are selling the capital through the method of public tendering and public auction method, as well as the transfer of the capital without reimbursement: to the employees and other citizens. the basic privatization techniques are tendering and auction, while the privatization of non solvent companies in crisis is conducted after the previous procedure of restructuring that means previous organizational, financial and statutory restructuring. Tendering and auction selling of the capital are based on the principles of publicity, competition, equality and eligibility. Bidding of the participants is meaningful and the capital can be sold under the most favorable conditions only if these principles are fulfilled. On the contrary, with their breaking and limitations, bidding looses its meaning. The principle of publicity is satisfied if the ad is published in the proper manner, where the public is informed on the subject and conditions of selling and if the interested parties are enabled to be present at selling timely and on the spot defined by the ad. Unlike the principle of publicity that impacts the inducement of the demand, the principle of competition enables for the demand is expressed on the most favorable manner for the organizer of the selling. For such thing, it is necessary that several persons participate in the procedure, where the competition should be conducted according to the good business customs. If these conditions were not satisfied, the principle of competition is not fulfilled, so we can not talk about competition. The principle of eligibility contributes that it is provided seriousness and regularity of the competition, contracting with the person that has necessary capacity to be present as the buyer in this case, which is provided through the obligation that interested buyers pay the deposit and buy out the documentation, and the regularity with that that legislative lists who does not have so called capacity of the honor, that is who can not be the buyer.