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Evgeny Arkhipov[24]
Chapter 2 – Business Association Forms
4. Certain Types of Legal Entities
4.2. The State and Municipal Unitary Enterprises

Оглавление

The state and municipal unitary enterprises (or simply “the unitary enterprises”) are legal entities, which may be founded only by a state[40] or the municipalities. Their property is respectively in a state or municipal ownership. The unitary enterprises have special rights to such property (see below).

There are two types of unitary enterprises:

i) a state enterprise

A state enterprise has the economic management rights of the property assigned to it. Generally, the right to economic management grants the state enterprise with an opportunity to independently dispose of the movable property. For the disposal of real estate, the consent of the owner shall be obtained (state or municipality).

ii) a treasury enterprise

A treasury enterprise has the operational management rights of the property assigned to it. This means that a treasury enterprise must obtain the owner’s consent for the disposition of any property. The production made by the treasury enterprise is an exception (it can independently dispose of it, unless otherwise provided by the legal acts).

The legal capacity of unitary enterprises is limited to the purposes of the activities stated in their charters.

Unitary enterprises are created mainly for rendering services to the population in those spheres where the activities of individual entrepreneurs are inadmissible or impossible (for example, public transportation, the production of goods being important for the state and society, etc.).

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In this case, both the Russian Federation and its subjects are considered as a state.

Russian business law: the essentials

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