Section 20, The National Commission for Privatisation Act, 2002

(1) Subject to subsections (2) and (3), the process of divestiture shall be as follows:— (a) for loss making public enterprises engaged in production, the divestiture shall be by outright sale without any further capitalisation; 12 No. 12 National Commission for Privatisation Act 2002 (b) for performing enterprises, the divestiture shall be by contracts with a single company or a consortium of companies, to manage all or parts of the public enterprise, until such time that full divestiture takes place; (c) for commercial banks, the divestiture shall be by a withdrawal of Government so as to increase the participation of such private investors as will enhance greater efficiency in the financial sector. (2) Without prejudice to the generality of subsection (1), a divestiture may take one or a combination of the following forms:- (a) the sale of the business to a private sector investor or investors or the sale of the assets of the business in part or as a whole; (b) joint venture of the State with a private sector investor; (c) management contracts with a single company or a consortium of companies, of all or part of the public enterprise; (d) performance contracts; (e) liquidation of the public enterprise; (f) sale to other shareholders in the company where Government owns part of the shares; (g) leases, in the case of hotels; (h) employee or management buyouts so as to broaden local participation in the process. (3) It shall be the responsibility of the Commission to ensure that all transactions in the process of divestiture are transparent and in the public interest and shall set out in the minutes of the Commission the basis of its decisions. (4) Every proposal for diverstiture approved by the Commission shall, before implementation, be laid before Parliament for a period of twenty-one days. No. 12 National Commission for Privatisation Act 2002 13 [Margin: Additional guidelines in respect of particular enterprises.]