THE FINANCE EXISTING IN STATE-OWNED ENTERPRISES (SOEs) IN ESSENCE IS STILL STATE FINANCE

The finance in SOEs is essentially still state finance, even though the state assets in SOEs are state assets that have been separated. It is incorrect to assume that the separated state assets are no longer state assets and are fully subject to the Limited Liability Company Law. Even though the state’s assets are separated into SOE capital, the inherent nature of the separated asset does not diminish the legal status of state money to become private money. Separation of state assets and inclusion of assets on the part of private institutions, especially SOEs, will not abolish the status/characteristics of state finance.

Supreme Court Decision 2405 K/Pid.Sus/2016, 2 March 2017.

Source: Supreme Court Decision Directory Website

Best regards,

Fredrik J. Pinakunary