Venezuela Post: Caracas Government Creates Socialist Business Entity USDA FAS

Venezuela Post: Caracas Government Creates Socialist Business Entity USDA FAS

Executive Summary: General Information: Begin Informal Translation Article1. Authorizes the creation of a government company under the structure of a “public limited company” called CORPORACION DE MERCADOS SOCIALISTAS (COMERSO) – Socialist Markets Corporation- which will be assigned to the Peoples Power Ministry for Commerce. Article 2. COMERSO’s objective is to serve as commercialization channel for products manufactured by communes, socialist factories, and companies recovered from the private sector participating equally in the constitution of transnational companies willing to generate socio-economical links between nations. Likewise, COMERSO will provide an incentive to socio productive organizations emphasizing strategic areas related to the transition to socialism. Article 3. COMERSO’s business domicile is Caracas, and it can establish branches, subsidiaries and representation offices anywhere within the Bolivarian Republic of Venezuela and abroad, upon Board of Directors and Shareholders Assembly decision, and approval from the Peoples Power Ministry for the Commerce. COMERSO will operate as headquarters, holding the following companies: Megatiendas Hogar (Home Megastores), Automotriz (Automotive); Mercados de Economia Popular (Popular Economy Markets); Tiendas Alba (Alba Stores); Red de Areperas Socialistas (Socialist Areperas Net); Tienda Virtual y Maquinas Expendedoras (Virtual Store and Supply Machines); Mercados Mayoristas (Wholesale Markets); Ferias (Fairs), Comersitos; Red de Farmacias Socialistas (Socialist Drugstores Net); Comercio Exterior (Foreign Trade). Article 4. COMERSO’s public limited capital stock will be Bs 100,000,000 represented by 1,000 bearer non-changeable nominative stock shares. Each share’s value will be Bs. 100,000, subscribed and paid in 100% by the Bolivarian Republic of Venezuela under approval from the Peoples Power Ministry for the Commerce. Article 5. The shareholders’ assembly will manage the company, performing the highest level of authority, and will have sufficient rights in order to accomplish COMERSO’s objectives. Article 6. COMERSO will be administered by a Board of Directors formed by the President and Vice President and three Directors who will have a respective back-up: The Board of Directors’ members and back-ups will be designated as follows: 1. The Bolivarian Republic of Venezuela’s president will select the company’s president and vice-president who will be chosen out of three candidates that will be presented by the Peoples Power Ministry for the Commerce. 2. The three directors and back-ups will be selected by the Peoples Power Ministry for Commerce.

COMERSO’s president, vice president and board of directors’ functions and duties will be defined through COMERSO’s official charter as well as its organization and operation regulations. Article 7. COMERSO shall follow the regulations and policies dictated by the National Executive, through the Planning Central Commission, to complete its objectives. Article 8. The Peoples Power Ministry for Commerce will handle the tasks related to elaboration and registering of COMERSO’s official certificate before the corresponding Mercantile Register Office and upon review of the respective project by the Republic’s National Law Office, and shall publish in the Bolivarian Republic of Venezuela’ Official Gazette according to that provided in article 104 from the Public Administration’s Organic Law Decree. Article 9. The Peoples Power Ministry for the Commerce is in charge of the Decree’s execution. Article 10. The present Decree is valid as of its publication on the Bolivarian Republic of Venezuela’s Official Gazette. End of Informal Translation