Remaining State Control Over Privatised German Enterprises

Joachim Wolf

jcls Vol 1 Issue 2 (December 2001)

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Abstract

In recent years numerous German state enterprises have been (partially) privatised. This process has been achieved through the establishment of a variety of types of hybrid enterprises. The legal classification of these hybrid enterprises presents some difficulties, as does the question of how to oblige privatised companies or enterprises with a hybrid character to serve the public interest and to secure a continued high standard in the provision of public services at affordable prices. Where privatised firms have been introduced to the stock exchange, their legal status and the extent of remaining state control are of interest to potential investors. This paper examines various privatisation structures that have been employed in Germany, and identifies problems that can arise in relation to the exercise of state control over mixed public private enterprises.

Keywords

Germany, company law, hybrid enterprises, investors, legal status, privatised enterprises, public interest, public services, public-private, shareholding, state control