Shares of Public Joint-Stock Companies as a Part of Federal Treasury: Public Finance Law Aspects

This paper is aimed at improvement of legal environment governing provision of the public financial interests in the cases the Russian Federation plays investor’s and stakeholder’s roles. The main objectives of the present research are: a) observation of the legislation on usage of the shares as a part of federal treasury and formulation of theoretical foundations in respect of participation of joint-stock companies with state shares in budget legal relationships; b) observation of the legislation on state financial control over exercise the investor’s and stakeholder’s rights by the Russian Federation; c) investigation of problems of federal government bodies’ inefficient activity on expenditure of budget funds for buying the shares, exercise of stakeholder’s right for receiving the dividends and provision of funding money to the budget in the form of profits from privatization; d) finding grounded on OECD Guidelines on Corporate Governance of State-Owned Enterprises solutions to these problems. Based on this research the following conclusions were made: firstly, joint-stock companies with state shares are directly connected with budget process; secondly, these companies are objects of external and internal state financial control; thirdly, federal government bodies’ activity on exercise of investor’s and stakeholder’s rights is inefficient for the federal budget for a range of reasons; fourthly, these problems can be solved if the Russian Federation mitigates «conflict of interest», arising from its role of stakeholder and public-law entity.