Government officials as a quasi-body of Polish state-owned companies

Background: State-Owned Enterprises (SOEs), like other joint-stock companies, are determined by external and internal corporate governance mechanisms. In SOEs additionally operate a mechanism that is absent in private companies, i.e., supervision by government officials. The article analyses the imp...

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Bibliographic Details
Published inStudia prawno-ekonomiczne Vol. 119; no. 119; pp. 333 - 353
Main Authors Postuła, Igor, Wieczorek, Agata
Format Journal Article
LanguageEnglish
Published Lódz Łódzkie Towarzystwo Naukowe 01.01.2021
Lodz Scientific Society
Lódzkie Towarzystwo Naukowe
Subjects
Alliances
Companies
Corporate governance
Economy
Efficiency
Influence
Political power
Prime ministers
Public enterprise
Public officials
Regulation
Stockholders
Supervision
Poland
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Summary:Background: State-Owned Enterprises (SOEs), like other joint-stock companies, are determined by external and internal corporate governance mechanisms. In SOEs additionally operate a mechanism that is absent in private companies, i.e., supervision by government officials. The article analyses the impact that such supervision has on SOEs. Research purpose: The article’s purpose is to demonstrate government officials’ impact on State- Owned Companies (SOCs) and identify its formal and informal determinants. Methods: The research is multidisciplinary, comprising an analysis of legal regulations and a survey carried out among members of SOCs’ management and supervisory boards and officials of the Ministry of the Treasury who supervise those companies. The research sample encompassed the entire population, i.e., all Polish SOCs where the rights derived from shares are exercised by the Minister of the Treasury and all officials that supervise those companies. Conclusions: The government officials are a quasi-body of SOCs and a unique corporate governance mechanism that not only supervises companies directly but also influences other corporate governance mechanisms. The administrative nature and political influence on government officials are an obstacle to ensuring the business efficiency of companies that are supposed to respond timely and adequately to specific market situations.
ISSN:0081-6841
2450-8179
DOI:10.26485/SPE/2021/119/18