LEGAL GROUNdS OF USING STATE PROPERTY IN ECONOMIC ACTIVITY

Problem setting. Since Ukraine gained its independence, the state sector no longer holds its monopolistic position in national economy. The range of proprietary rights in respect of state property has also extended and other legal grounds of using state property in business activity have appeared. Analysis of recent researches and publications. Recent researches on legal issues of state property and state ownership are represented by the studies of such scholars as I. Yershova, V. Ustymenko, R. Dzhabrailov, O. Pidtserkovnyi, D. Zadykhailo, O. Shapovalova, B. Derevianko, V. Koval, A. Zakharchenko and others. However until today no comprehensive research of legal grounds of use of state property by the business entities in different economic sectors has been made. Target of research. The target of this article is to examine and classify the legal grounds for usage of the state property by the business entities in different economic sectors. Article’s main body. The entities of the state economic sector can be fundamentally divided into two categories: 1) those that operate solely on the basis of state property and 2) those in which the government owns a certain percentage of equity rights (such percentage is set forth by the legislation). According to the Commercial Code of Ukraine, the entities of both categories use the state property under the right of economic jurisdiction or the right of operational management. But the analysis of the legislation and its application practice shows that the joint-stock companies which are referred to the state sector entities can use the property under both ownership rights and right of economic jurisdiction. The legal grounds for using state property in municipal and private sectors are contractual rights. Moreover the contracts resulting in possibility for the private sector entities to use state property are divided into contracts governed by the special laws and those regulated by the Civil Code of Ukraine. The procedure of making relevant contract depends on which category it is referred to. Conclusions and prospects for the development. The legal grounds for use of the state pro perty depend on which sector of the economy the entity using such property refers to. The entities of the state sector of economy use the state property under the proprietary rights, the entities of municipal and private sector are doing it based on contractual rights. At the same time current legislation of Ukraine does not determine at all the grounds for usage of the state property by the government authorities. There are no legal reasons for distinguishing the legal regimes of property of the joint-stock companies which state participation and without such. All companies with state participation have to be recognizes by the law as the owners of property; and the State as any other private entity should manage such company through the general mechanism of equity rights implementation. In the state sector of the economy its entities are using the property not only under the rights of economic jurisdiction or operational management but also based on ownership rights. Therefore it is recommended to make relevant amendments to s. 5 article 22 of the Commercial Code of Ukraine.