CET ON-LINE*4-APR-96

Tuesday, 4 April 1996 Volume 1, Issue 323

The Slovak Constitutional Court on Wednesday effectively anulled

as unconstitutional a law on strategic companies that gives the

state a "golden share" veto on key decisions. The law, approved

by parliament last July, listed dozens of companies which would

either continue to be state-owned or in which, if privatised,

the state would reserve the right of veto over key decisions.

The ruling means the state will no longer be able to keep the

decisive influence in privatised firms like oil refiner Slovnaft

a.s., energy company Nafta a.s., or steel works Vychodoslovenske

zeleziarne a.s. (VSZ). A court spokeswoman at the seat of the

court in Kosice told Reuters the court had rejected a key

article, under which companies listed in the law had to provide

for special state veto rights in their statutes. Some 25

companies totally excluded from privatisation, such as gas and

energy industries, telecommunications firms and arms producers,

were unnafected by the court's ruling. The ruling will prevent

the state from retaining a controlling share in the banking

sector, which is expected to be privatised in the first half of

this year.

--- MMMR v4.50unr * tycha voda brehy mye