Peculiarities of property management of subsidiary companies established by the joint-stock companies with state participation (on the example of “Russian Railways” JSC)

Abstract

The relevance of this topic is substantiated by the insufficient coverage within scientific literature of the questions of legal regime of property of subsidiary companies with state participation in share capital, and management of state property transferred to such economic entities. The majority of research on the topic of property management of legal entities with state participation is structured through the prism of the efficiency of usage of state property, leaving outside the scope property sphere of subsidiary companies, which is also of considerable interest. The object of this article is the process of property management in the joint-stock companies with state participation, while the subject is the relations between the state-owned joint-stock company and its subsidiaries in the property sphere. Special attention is given to the practice of “Russian Railways” JSC (100% of which belongs to the Russian Federation) that is one of the largest private owners of real estate in Russia , and consolidates significant volume of money, shares and other movable property, which makes “Russian Railways” JSC and its subsidiary companies a fruitful ground for studying the topic at hand. The article underlines the need for identification of boundaries of the corporate and economic control of the parent company over its subsidiary, the absence of which in the current legislation can lead to a relative property autonomy of the subsidiaries of large joint-stock companies with state participation. Therefore, the author proposes mechanisms for improvement of legislation.