Publication: Preemptive Rights and Privatization
Many governments have concluded joint ventures with private investors that contain preemptive rights contractually restricting the rights to transfer ownership of a company's securities. The privatization of these joint ventures often places governments in an awkward situation. Now wishing to sell some or all of their shares, they find themselves caught between the desire to divest a good price, or at least a politically defensible one, and the need to comply with the contracts they have signed. What can they do? Depending on the amount of preemptive rights in the privatization portfolio, governments can adopt either a case-by-case approach or a more comprehensive solution. This Note sets out the options.
“Frémond, Olivier; Nellis, John. 1998. Preemptive Rights and Privatization. Viewpoint. © World Bank, Washington, DC. http://openknowledge.worldbank.org/entities/publication/9fe394c2-ed6f-5d64-9a04-36ac31d291fc License: CC BY 3.0 IGO.”
Other publications in this report series
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PublicationSmall Business Tax Regimes(World Bank, Washington, DC, 2016-02)Simplified tax regimes for micro and small enterprises in developing countries are intended to facilitate voluntary tax compliance. However, survey evidence suggests that small business taxation based on simplified bookkeeping or turnover is sometimes perceived as too complex for microenterprises in countries with high illiteracy levels. Very simple fixed tax regimes not requiring any books or records tend to be overly popular but prone to abuse. System reforms will require more precise tailoring of the simplified regimes to their target beneficiaries, coupled with strong compliance management to detect and deter abuse. The overall objective of simplified taxation for micro and small enterprises (MSEs) in developing countries is generally to facilitate voluntary tax compliance and remove obstacles in moving toward business formalization and growth.
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