Entrepreneurs: Decree # 7 Is Sword Of Damocles Hanging Over CEOs

The "liberalization" decree threatens to turn any inspection into a major fine.

The Business Union of Entrepreneurs and Employers named after Professor M. S. Kuniauski sent a letter to the Ministry of Economics with a request to clarify the norm on strengthening the responsibility of a CEO, recently adopted by the Decree # 7 on "the development of entrepreneurship", tut.by writes.

The Union recalled that at the stage of preparation of the decree, the business community objected to strengthening the responsibility of a CEO. The wording about "proper organization of the the work of a business entity, excluding damage to the state or public interests, the environment, life, and health" seemed blurred. Nevertheless, the norm remained in the document, and now for its violation, CEOs face a fine in the amount of 10 to 200 base fees (1 base fee amounts to Bn 23 rubles).

The Decree #7 says: "The failure of the CEO of the legal entity to take the necessary measures to properly organize the activities of this legal entity in accordance with the requirements established by legislation, resulting in harm to the state or public interests, the environment, life, health, rights and legitimate interests of citizens, if this act does contain the corpus delicti of another administrative offense, entails the imposition of a fine in the amount of ten to two hundred base fees. "

It is noted in the press release of the business union, that, according to the Procedural-Executive Code of Belarus on administrative offenses, officials of 72 bodies, organizations, inspections, as well as other persons can draw up protocols on administrative violation. At the same time, it is unclear how the controllers will determine the "proper organization of activities" of a business entity and what measures the CEO should take for "proper" management. The considerable dispersal of a possible fine also causes bewilderment.

"With the adoption of the Decree #7, the sword of Damocles is hanging over the directors, because any spot check can result in a large fine, and under unclear requirements. The term "proper organization of activities" will be interpreted by the controller on the basis of their own level of development and understanding of normative legal acts, "- director and co-chairman of the Business Union of Entrepreneurs and Employers named after Professor M. S. Kuniauski Zhanna Tarasevich said.

Even failure to fulfill the notorious demand to provide an average salary of $ 500 equivalent can be regarded as an excuse to hold the CEO accountable, experts of the business union believe.

According to the Business Union of Entrepreneurs and Employers, claim 6 of the Decree #7 does not comply with the law "On normative legal acts", according to which legislative terms should be clear and unambiguous. In order to avoid arbitrary interpretation, the business union proposes to develop a normative legal act that will interpret the application of the provisions of the Decree #7, in particular, clarify the concepts of "proper organization of activities" and "failure by the CEO of the legal entity to take the necessary measures for the proper organization of activities".