THE PRESIDENTIAL DECREE ON INDUSTRIALIZATION EXECUTIVE COMMITTEE PROMULGATED ON THE OFFICIAL JOURNAL
The Presidential Decree, setting out the principles and procedures on establishment of the industrialization executive committee to enhance the domestic production and technological capabilities, as well as the duties and powers thereof, was promulgated on the Official Journal on 14.10.2020.
To be convened by the president granted with the authority to set the meeting agenda items, the committee will be able to adopt resolutions to enable the public institutions and organizations to perform long-term procurements and to invest in strategical areas where the domestic production remains limited, in a manner to create new opportunities for domestic production.
The committee will also adopt resolutions to be binding on the public institutions and organizations in relation to the products which will be primarily produced by domestic means, as well as resolutions to guide the public practices to strengthen the capital structures of industrial production companies, and to encourage mergers, if and when so required.
The committee is granted with the power to intervene in the capital structures of the companies, which is the most striking and questionable power of the committee. In accordance with the power granted under the said Presidential Decree, the committee will be able to adopt resolutions on any and all acts and actions in relation to changes in the capital structures of the critical companies which might put the sustainability of domestic production and national security at risk. As the limitations on such power have not been set out clearly, the committee has been granted with a highly extensive discretion especially on the capital structures of the companies, which has created uncertainty for the principle of legal certainty and the property right.