Models of administrative and legal regulation of activities of enterprises with the state part of the property in foreign states

Abstract

The paper is dedicated to issues on administrative and legal regulation of activities of enterprises with the state part of the property in foreign states. Enterprises with the state part of the property are a powerful force in the world economy and play a significant role in forming governmental strategy and development of national, regional, and local economies. The legal status of enterprises with the state part of the property characterizes peculiarities of their relationships with the state and the society and implies the existence of certain rights and commitments. There is no state, in which a single legislative act that regulates activities of all state enterprises, exists. Every enterprise is established and acts based on a regulative act of state institutions. They regulate methods of control and state governance and regulate financial and property relationships with a state and a market.

An experience of foreign states demonstrates the existence of four major models of the corporative governance of state enterprises. They are decentralized, advisory, dual, and centralized. However, mentioned models exist occur in “pure” form very seldom. As a rule, in different countries, pieces of several models are combined. It is necessary to stress, that the majority of states-members of the Organization of Economic Collaboration and Development (OECP) use a dual model. According to this model, the rights of the state as a stakeholder are implemented by two Ministries. They are a line ministry and a ministry tasked with corporate governance. During the last years, a trend of transition to a centralized structure of governance with state companies is represented in many countries of the world. Although in certain states, particular pieces of decentralized, advisory, and dual models are used, a position of the centralized model of governance regarding state enterprises.