Problems of legal regulation of state and municipal enterprises

Regulatory problems of State-Owned Enterprises In 2010, the Ministry of Economy of the Republic of Lithuania examined the usage of Lithuanian state-owned commercial property and prepared a review. The review results showed that Lithuanian state-owned enterprises operate inefficiently. As a result, the reform of state-owned enterprises legal framework was started, hoping that it will increase effieciency of state-owned enterprises and state-owned enterprises will achieve better results. The aim of this work is to analyse the reform of Lithuanian state-owned enterprises legal framework which started in 2010. It is sought to find out whether the reform of state-owned enterprises legal framework is in line with best international examples and standards. In this work, particular attention is paid to the most relevant national laws governing state-owned enterprises which are Ownership guidelines and Transparency guidelines. In addition to that, a lot of attention is paid to international standards of state-owned enterprises which are OECD Guidelines on Corporate Governance of State-Owned Enterprises and World Bank Group Corporate Governance of State-Owned Enterprises: A toolkit. The work consists of three main parts. First part is devoted to discuss the state involvement in commercial activities and the related challenges. Second part is devoted to discuss the reform of state-owned enterprises legal framework in Lithuania. Third part is devoted to discuss regulatory problems of state-owned enterprises. Third part focuses on state-owned enterprises management model of Lithuania. Also, it focuses on current legal framework regarding professionalism and independence of boards of state-owned enterprises. Finally, vague dividend policy and shareholders’ rights protection issues are discussed