What are state and municipal unitary enterprises? In Russian legislation, in particular, in the Civil Code, there is a definition of this term. In accordance with it, state and municipal unitary enterprises are organizations created with the aim of solving the main tasks of the state and making profit, but at the same time not being the owners of the property assigned to them.
Only the founder has the right to dispose of it. They are called unitary because property cannot be divided into shares, stocks, deposits and other parts. In the name of the subject must certainly be an indication of the owner.
State and municipal unitary enterprises are divided into 2 types. The first - organizations based on the right of economic management. It should be noted that such unitary enterprises as municipal are included here. They are created after the appropriate decision by the authorized state body or municipality.
The second type is organizations based on the right of operational management. They can be founded only by decision of the government of the country. State and municipal unitary enterprises in this case have a rather specific legal position. So, they are created in order to provide certain services, perform work or manufacture any product, which is typical for commercial organizations. At the same time, all activities of the enterprise can be based on financing from the budget.
State (municipal) unitary enterprises. Features
First of all, this type of business entities has special legal capacity. That is, they were created with the aim of performing certain work, providing services or manufacturing some products, which is a characteristic feature of commercial organizations. However, state and municipal unitary enterprises are not at all limited in their rights to complete certain transactions. So, for example, they can rent vacant premises (unless otherwise provided by the charter and other regulatory acts).
Another feature is that such business entities are individual enterprises.
The third specific feature of this variety of enterprises is related to the Civil Code. Particular attention is paid to terminology. In relation to such organizations, the definition of "enterprise" acts as the subject of civil rights, in other cases it is only an object of legal relations.
Among other things, they can apply for targeted financing (this includes subsidized deductions, subsidies, as well as subventions). It is carried out to carry out a variety of programs. The advantage is given to those who are socially oriented.
The fourth feature follows from here. The charter of economic entities of a unitary type should include information on the direct owner of the property, sources of formation of the authorized capital and the procedure for its formation. It should be noted that the company is not responsible for the obligations of the owner, but he is responsible for the activities of the organization.
Unitary enterprise management
There is a sole manager, and not a collegial body, as is the case in other cases. This is usually a director. The person is appointed to this position by the owner or a special body with the appropriate authority.
Advantages and disadvantages of a similar form of business entities
Let us first consider the positive aspects of unitary enterprises. Firstly, they are called upon to solve those issues that are relevant in society at a given time. Secondly, they are more sustainable (compared to other commercial enterprises). This is due to the fact that, as a rule, they operate in industries whose level of profitability is not of interest to private entrepreneurs; accordingly, there is no competition. In addition, government support protects these entities from ruin. Another advantage is the timely payment of wages, predictability.
Now, a few words about the flaws.
First of all, unitary enterprises are less efficient from an economic point of view. Also, a constant level of remuneration leads to a decrease in its productivity, loss of interest on the part of employees, since there is no competent motivational component. It is also important that at these facilities property is often used for personal gain, theft, a high degree of bureaucracy is characteristic.
So, we can say that creating unitary enterprises is advisable only in those areas where the use of other forms is less effective.