REFORM OF THE STATE Decree 2686/91 Please note that the Ministry of Labour and Social Security is involved in any privatization process in which a Participated Property Programme is implemented.

Bs. As., 20/12/91

VISTO Law No. 23.696, its Rule Decree No. 1105 of 20 October 1989 and Decree No. 2423/91, and

CONSIDERING:

That Law No. 23.696, contemplates in Chapter III the application of Participated Property Programs as a specific way for the acquisition of all or part of the representative actions of the share capital of companies, societies. establishments or productive haciendas declared "subject to privatization".

That the Participated Property Programs constitute an important way of access to the property of the company's capital or entity for the different acquiring subjects defined by Law No. 23.696 and, part, for the workers employed in such entities in relation to dependency.

That, taking into account that characteristic of the Programs, it is especially relevant the incidence that their implementation may have in the field or in the labor relations and as an instrument to improve the economic conditions of the workers.

That, according to that close link between the system created by Chapter III of Law No. 23,696 and the policies of employment and protection of the workers in charge of the State, it is desirable that the Ministry of Labour and Security SOCIAL intervenes primarily in any privatization process in which a Participated Property Programme is implemented, without prejudice to the powers conferred on each case by the Implementing Authority.

That the present decree is issued in exercise of the powers arising from article 86, paragraphs 1 and 2 of the National Constitution.

Therefore,

THE PRESIDENT OF THE ARGENTINA NATION

RIGHT:

Article 1 . In any process of privatization of enterprises, societies, establishments or productive estates where a Participated Property Programme could be adopted, in the terms of Article 21 of Law No. 23,696, the Ministry of Labour and Social Security shall intervene by exercising the functions determined by the following article.

Article 2° de Pursuant to the preceding article, the Ministry of Labour and Social Security shall:

a.)Determine, for each company, society. establishment or productive hacienda that is declared "subject to privatization", the feasibility of implementing in the case a Participated Property Program.

(b) Determine in each case, the desirability of participation in the Participated Property Programme of any or all types of acquiring subjects defined by article 22 of Act No. 23,696.

(c) Determine the share of shareholders of a Participated Property Program, in the corporate structure of the entity to privatize

(d) Establish the necessary requirements for the accreditation of employee, user or producer status for the purposes of section 22 of Act No. 23.696.

(e) Establish procedures through which the acquirers defined in article 22 of Act No. 23,696 express their commitment to the Individually Participated Property Programme.

(f) To entrust the procedures through which, the acquirers defined in article 22 of Act No. 23,696, shall collectively express their commitment.

(g) To propose to the P.E.N., where appropriate, the reform of the statutes of the companies, societies or entities declared "subjects to depritisation" incorporating the rules that allow the implementation of a Participated Property Program.

(h) To propose to the NPP the granting of preferences in the cases provided for in Article 16(2)(3) and (4) of Law No. 23.696.

(i) Develop, with the intervention of the Application Authority, the coefficients of participation for each class of acquirers and establish the criteria of approval between the coefficients corresponding to each class.

(j) Execute actions leading to avoid the negative effects of privatization processes on employment and the loss of jobs as prescribed in article 41 of Act No. 23696.

(k) Execute all other actions that are necessary in order to implement and implement, in each process of privatization, the Participated Property Programs developed in accordance with Chapter III of Law No. 23.696.

Art. 3° todo In any process of privatization in which a Participated Property Programme, the Ministry of Labour and Social Security is implemented, it will coordinate with the Implementation Authority in whose jurisdiction the entity is to privatize, the tasks to be carried out in such a way that the process is not obstructed.

Article 4° . The deadlines of 150 and 90 days provided for in Articles 3° and 4°, respectively, of Decree No. 2423/91, shall be counted from the date of validity of this decree.

Art. 5° . Refer to article 13 (a) (v) and article 27 of the Regulation of Law No. 23.696 adopted by Decree No. 1105 of 20 October 1989.

Art. 6° . Delete article 1 (j) of Decree No. 2423/91.

Art. 7° pub Communicate, publish, give to the National Directorate of the Official Register and archívese. . MENEM. Rodolfo A. Diaz. . Domingo F. Cavallo. . Antonio E. González.