Residual state property and ownership rights

Despite the massive scale of the voucher privatization, there still remains a substantial number of companies where the state has been involved. The residual state property is quantified from the point of ownership and ownership rights that enable control over the assets of privatized companies. By the beginning of 1999, the state was able to control 76 % of assets of the companies in the portfolio of the National Property Fund. This means that the state has been able to control quite a significant part of the Czech economy and interfere with the concept of property rights. The results thus question achievement of the voucher privatization. There exists a clear consensus that further privatization of the residual state property is both necessary and inevitable. It is a condition for further economic growth.

Keywords: privatization, corporate governance, ownership rights, state control, book value of assets, joint stock company, shareholder