What are public company forms

public company

An organization that, on behalf of the state (public), is dedicated to the fulfillment of individual needs that can be derived from social functions and does not strive for profit, but at best for cost recovery. This also includes all institutions, corporations and associations that create a product or provide a service and charge a price or a fee for this.

Economic entities that are publicly sponsored and make economic dispositions over goods to be produced and sold in the sense of public goals. They differ formally from public administration companies in that they are not incorporated into the budget of the sponsoring body, but only appear in the budget with their profits and losses. This gives you greater economic independence, which is also expressed in the legal form of public companies. The regional authorities (federal, state, local) and supranational administrations (e.g. European Community) can be considered as sponsoring bodies. The following legal forms are available (see Fig.). The federal government and the federal states have legally independent companies under public law, such as corporations (e.g. social insurance), institutions (e.g. Deutsche Bundesbahn, Deutsche Bundespost) and foundations under public law, and fully or partially through private law companies such as partnerships and corporations, cooperatives, but also foundations. At the municipal level, there are state-owned companies, self-owned companies (public company form without legal personality), legal forms under public law (especially special-purpose associations) and private companies under private law, which mainly serve the supply (public supply company) and transport (public transport company). There are also savings banks, hospitals, theaters, etc., as well as semi-public and state-related public companies and administrative operations such as radio and television companies (Parafisci) and chambers of industry and commerce, which are corporations under public law. In the case of investments by the public sector in companies with a legal form under private law, i. d. As a rule, significant influence (majority shareholding) must be given in order to be able to speak of a public company. Public companies primarily serve the fulfillment of economic goals that are embedded in the political fields of the regional authorities, such as social and medium-sized companies, distribution, spatial planning, corporate social policy, competition, economic activity, employment, structural and innovation -, constitutional, fiscal and social policy. Public companies thus have an instrumental function for the achievement of public goals, whereby the problem of coordination between public goals and the simultaneous pursuit of the company's own, especially financial goals, arises. Even when pursuing public objectives, one cannot do without maintaining the financial equilibrium, namely that income and expenditure correspond. It is therefore a question of collective bargaining policy whether a deficit should be compensated by subsidies or whether public companies should operate as fee budgets in compliance with the cost price rule according to the compensation theorem or ultimately even generate profits (earned income). This problem arises separately for different types of public companies. Public utilities, which serve e.g. the supply of energy or water, are characterized by an obligation to contract with regard to their sales policy, i.e. they have to deliver to customers, just as the customer is usually not free to choose his energy source (e.g. electricity, gas, district heating), but under obligation to connect connected to the existing supply network. Furthermore, according to the Energy Industry Act, energy supply companies are subject to state price regulation and the types of tariffs prescribed in the federal tariff regulations for the energy industry. Public transport companies are subject to lesser restrictions with regard to their tariff policy, where tariffs are usually set in accordance with internal organizational and statute law, such as for the Deutsche Bundesbahn or with regard to local transport at municipal utilities. The scope and structure of public companies are regulated differently in the European Community. The first approaches to standardization can be seen in the field of accounting. The Fourth EC Directive has led, for example, to an accounting directive law, according to which the new law should essentially also apply to public companies and only provisions of the municipal proprietary operation law (proprietary operations) take precedence. Literature: Oechsler; W. A., Purpose and Resource Use of Public Enterprises, Baden-Baden 1982. Thiemeyer, Th., Wirtschaftslehrelicher Betriebe, Reinbek bei Hamburg 1975.

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