BAKU, Azerbaijan, August 25. President of the Republic of Azerbaijan, Ilham Aliyev, has signed a decree on additional measures to develop sericulture and carpetmaking, as well as preserve and promote the country’s national handicraft heritage.
The decree was published on the official website of the President of Azerbaijan.
The decree states:
“Sericulture and carpetmaking are traditional handicraft sectors that occupy an important place in Azerbaijan’s rich historical and cultural heritage and have developed in close connection with agriculture and light industry. The development of these sectors makes an important contribution to diversifying the non-oil and gas sector, increasing employment in the regions, expanding local production and export potential, as well as preserving and promoting national cultural heritage.
“To ensure the sustainable development of sericulture and carpetmaking, it is necessary to improve management mechanisms, strengthen coordination across all stages of the production chain and reinforce the raw material base. At the same time, comprehensive measures to improve product quality, preserve and develop handicraft traditions and weaving schools, expand scientific research and professional training, and increase the competitiveness of local products in foreign markets are of particular importance.”
Under the decree, Azerkhalcha Open Joint Stock Company will be reorganized through the merger of Azeripek Open Joint Stock Company into it.
The Gakh District Breeding Sericulture Station, currently subordinate to Azerbaijan’s Ministry of Agriculture, will be transferred to Azerkhalcha along with its property to organize breeding activities in sericulture.
The privatization process of the state-owned shares of Azeripek Open Joint Stock Company has been suspended.
It was established that:
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Azerkhalcha will be a commercial legal entity responsible for developing, promoting and supporting sericulture and carpetmaking in Azerbaijan; carrying out production, processing, sales and export activities in these sectors; developing the raw material base; preserving the national handicraft heritage; and coordinating activities in these areas from a single center;
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Azerkhalcha will be the legal successor of Azeripek Open Joint Stock Company, with all rights, obligations and property of Azeripek transferred to Azerkhalcha;
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the company's day-to-day management will be carried out by a three-member Management Board consisting of a chairperson and two deputies.
The powers of the company's general meeting will be exercised by the following authorities:
President of Azerbaijan:
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reorganization and liquidation of the company;
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establishment of the company's executive body;
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appointment and dismissal of the chairperson and deputy chairpersons of the Management Board.
Cabinet of Ministers of Azerbaijan:
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approval of the company's charter, in coordination with the President of Azerbaijan;
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determination and amendment of the company's authorized capital, in coordination with the President.
Ministry of Economy of Azerbaijan:
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in coordination with the President, exercising matters assigned under the Civil Code to the exclusive authority of the supreme management body, except for those specified in Sections 5.1 and 5.2 of the decree;
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exercising other powers assigned to the general meeting under Azerbaijani regulatory legal acts and the company's charter.
The Cabinet of Ministers was instructed to prepare and submit proposals to the President on the following:
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within three months, improving regulatory legal acts, taking into account Sections 1, 2 and 5 of the decree;
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within six months, expanding domestic processing of fresh cocoons produced in Azerbaijan, establishing a complete production chain in sericulture and increasing the production of high-value-added silk products;
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approving the company's new charter, structure and authorized capital within three months, in coordination with the President;
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taking the necessary measures within six months to transfer Azeripək's property to Azerkhalcha's balance sheet;
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resolving other issues arising from the decree.
The Ministry of Economy of Azerbaijan was instructed to:
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submit to the Cabinet of Ministers, within two months, proposals on the amount of the company's authorized capital, agreed with the Ministry of Finance and taking into account Sections 1–3 of the decree;
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take measures to register the company in accordance with the Law of Azerbaijan on State Registration of Legal Entities and the State Register;
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take the necessary measures to resolve other issues arising from the decree.
Azerkhalcha, in coordination with the Ministry of Economy, Ministry of Agriculture, State Tourism Agency and Shaki City Executive Authority, is to prepare and submit to the President within six months proposals to promote carpetmaking, cocoon production and sericulture traditions in Azerbaijan and abroad, as well as to brand and promote the export of relevant products.
The Agricultural Subsidy Council, established under the Rules for Subsidizing the Production of Agricultural Products approved by Presidential Decree No. 759 dated June 27, 2019, is to review, in accordance with the relevant rules, the amount of subsidies provided for fresh cocoons produced in Azerbaijan and delivered to procurers, as well as for establishing mulberry orchards.
The Ministry of Finance is to ensure the allocation of the financial resources necessary to finance measures arising from the decree.
The Ministry of Economy and Azerkhalcha are to take the necessary measures in accordance with the Law of Azerbaijan on the Securities Market to ensure implementation of Sections 1 and 3 of the decree.
