What is NICIL?
National Industrial & Commercial Investments Ltd. (NICIL) is a company incorporated under the Companies Act Chapter 89:01 on July 18th 1990 and continued under the Companies Act No. 29 of 1991. NICIL is owned by the Government of Guyana (GoG) and engages, among other things, in property, shareholding and investment management, which includes the acquisition, disposal and or, rental of Government owned properties, monitoring Government's equity in other companies and acting as the agent for Government agencies in the disposal of properties or management of companies.
What is the purpose of NICIL?
NICIL’s purpose is set out in its 21 core objectives as established in its Memorandum of Association, and can be summarised as follows: to subscribe for, take or otherwise acquire, hold, dispose and or manage GoG’s shares, stocks, debentures or other securities of any company, co-operative society or body corporate as well as properties vested in NICIL from time to time. Therefore, most GoG shareholdings in public corporations or companies, including those falling under the Public Corporations Secretariat, and the Co-operative Finance Administration Institutions are also owned by NICIL.
What is the Privatisation Unit?Following the failed nationalization of various enterprises, in 1992 GoG adopted a policy to privatise a number of properties and entities in order to promote private sector investment. A comprehensive reform programme was drafted into what is currently known as the Privatisation White Paper. The White Paper was created with the aim to create a competitive market driven economy and to serve as the guide for Government to achieve its vision.
What is the purpose of the PU?
With the creation of the White Paper, the Privatisation Unit was created, via an act of Parliament. The PU was established to co-ordinate the implementation of the GoG's Privatisation Programme.
What is the relationship between NICIL and PU?
On January 1, 2002, a Management Co-operation Agreement was signed appointing the PU as Exclusive Manager of NICIL. The agreement authorized PU to collect and account for proceeds derived from rents, dividends and other income in the name of NICIL. It was further agreed that all expenses of the combined entities (NICIL/PU) will be regarded as costs of NICIL.
Is NICIL a public or private company?
NICIL is a private company owned by the Government of Guyana. The distinguishing characteristic that prevents NICIL from being categorized as a “public” company is that it does not have more than 50 shareholders whose shares are traded on a stock exchange. For the purposes of the Companies Act it is a Government Company to which all sections of the Companies Act applies as well as Sections 48 and 49 of the Public Corporations Act, 1998.
If NICIL is a company of the Government, are revenues derived from Government holdings deposited into the National Consolidated Fund?Pursuant to Section 50 of the Companies Act Cap. 89:01 and the By-Laws of NICIL, dividends are paid to the shareholder out of the profits of a company as recommended by its Board. As a law abiding and socially responsible company, on an annual basis, dividends are declared by NICIL and paid over to the Consolidated Fund in compliance with this Act. For the period of 1991 to 2012 $15.415 B has been transferred from NICIL into the Consolidated Fund.
To whom does the Executive Director of NICIL and Head of PU report?
Both NICIL and PU have separate Boards of Directors as appointed by its shareholder, i.e, the Government of Guyana, to whom the Executive Director (NICIL) and the Executive Head (PU) report.