Features of organization of finance of enterprises of different patterns of ownership

     Introduction.

     In the developed market economy three leading managing subjects operate: households, the enterprises of various patterns of ownership and the state which represents itself as the collective businessman. The enterprises of various organizational-legal forms and their association are the basic managing subjects who concentrate the most part of the public capital (property).

     Any managing subject it is possible to consider as the certain system initiating streams of resources and reformative them in production or services, the offer on the market which realization provides achievement of the main objectives defining and justifying the fact of creation of the given subject. Financial resources play thus a huge role. At the moment of the enterprise basis, and also in the first years of its functioning priority value has investment aspect of management of the finance; further large value is got by questions of optimization of financing of current activity, in particular the analysis and forecasting of monetary streams, efficient control financial structure of the company, etc.

     The organization of financial streams and management of them depend on many factors, among them: the business type, the size of the enterprise, its organizational structure of management, etc. the Role and principles of the organization of financial streams, volumes mobilized resources, degree of security of interests of creditors sharply differ in the commercial and charitable organizations, in the financial and building companies.

     Finance of the enterprises of various patterns of ownership in aggregate is a compound link of a financial system almost any country. There the financial streams reflecting created gross national product, subject to redistribution through budgetary system in industrial and social spheres, sphere of house economy are formed further, etc.

     Finance of the enterprises represents system of the economic relations connected with formation and use of monetary funds and accumulation on the nation-wide purposes, financing of expenses of the enterprises.

     Features of the finance of the enterprises are defined by the organizational-legal form; pattern of ownership; in activity scales; spheres of capital investments of the enterprises.

     Depending on patterns of ownership the finance of the enterprises subdivides into the finance of the state enterprises and the finance of subjects of non-state patterns of ownership (private, cooperative, joint ventures).

     The civil code to an organizational-legal sign divides the enterprises and the organizations on commercial and noncommercial.

     The theme urgency consists that the current legislation provides creation of various types of the managing subjects which organizational-legal form leaves a certain mark on principles of management of the finance.

     The purpose of this course project is to consider features of the finance of the enterprises of various organizational-legal patterns of ownership. For object in view achievement following problems have been generated: to open essence and functions of the finance of the enterprises, and also features of formation and change procedure share (authorized) capital at the enterprises of various patterns of ownership; to show ways of functioning of securities and profit distribution. At performance of the given work sources of following authors have been used: A.A. Volodina, M.G. Lapusty, V.V. Ostapenko, N.A. Safronov, V.V. Kovalev, A.N. Gavrilova, N.V. Kolchinoj.

     Chapter 1. Essence and functions of finance of enterprises.

     1.1 Essence of finance of enterprises.

      The well-known Scottish economist A. Smith (1723-1790) asserted that work is valid, and money - a nominal measure of value. If earlier the universal equivalent role was carried out by gold in the conditions of the socialized manufacture this role is played by the credit (paper) money possessing ability of regulating of costs.

      The money underlying the finance, is a special goods, a universal equivalent. Money has arisen with the advent of the market, a commodity exchange, spontaneously having allocated from set of all goods, at the expense of the main property: in the market they have connected interests of the seller and the buyer. Money, serving a circulation of the goods and the capital, have acted at an initial stage and as result of this circulation.

      The social feature of money based on their economic properties, is a fetishism of money, i.e. management of behavior of people, it is the form of assignment of results of work.

Money is a basis of market relations. Market relations is, first of all financial relations when participants of the market assume to earn money and to use them on the various purposes, creating own corresponding monetary funds. In the conditions of commodity manufacture money carries out a role of economic control in the course of manufacture and distribution.

      Finance - the objective economic category of market economy playing the leading part. The finance is certain economic relations which arise while movement of money, i.e. transfer of money someone to someone, for example finished goods payment, payments of taxes in the budget begins, payment of dividends, reception and repayment of credits, etc. Hence, these economic relations are monetary, it - first; secondly, as a result of movement of money there are the monetary streams which are a part of financial activity of the enterprises, and, thirdly, as a result of movement of money at the enterprises the various monetary funds which are object of a finance administration are formed (Scheme 1). 
 
 
 
 
 
 
 
 

Scheme 1 Finance of the enterprise 

     Hence, the finance of the enterprises is the economic, monetary relations resulting movement of money and monetary streams formed on this basis, the created monetary funds connected with the functioning at enterprises.

     Finance of the enterprises - a basis of a financial system of the state as the enterprises are the basic link of an economic complex. The condition of the finance of the enterprise influences security money of nation-wide and regional monetary funds. Dependence here a straight line: the more strong and more stable financial position of the enterprises, the more provided nation-wide and regional monetary funds, are more full satisfied with that welfare and other requirements. (1,105) 

     1.2 Financial relations.

     Finance - specific sphere of the economic relations defined by movement of money. In their basis the processes resulting creation, distribution, an exchange and use of a total internal product and the national income lie.

     All financial relations of the enterprises can be united in four groups:

• With other enterprises and the organizations;
• In the enterprise;
• In associations of the enterprises and the organizations;
• With financially-credit system of the state.

     Financial relations with other enterprises and the organizations include relations with suppliers, buyers, the construction and transport organizations, mail and telegraph, the foreign trade and other organizations, customs, firms of the foreign states. It is the greatest on volume of monetary payments group. Relations of the enterprises are with each other connected with realization of finished goods and acquisition of material assets for economic activities. The role of this group is primary, as in sphere of production of goods the national income is created, the enterprises receive a gain from realization of production and profit. The organization of these relations makes the most direct impact on the end results of industrial activity. The main problem of these relations - non-payments.

     Financial relations in the enterprise include relations between branches, shops, departments, brigades etc., and also relations with workers and proprietors. Relations between enterprise divisions are connected with payment of works and services, distribution of profit, circulating assets, etc. Their role consists in an establishment of certain stimulus and a liability for qualitative performance of the accepted obligations. Their volume is defined by degree of financial independence of structural divisions. Relations with workers and employees are payments of a salary, awards, grants, dividends under actions, material aid, and also collecting of money for the caused damage, deduction of taxes. It is thus very important, that workers of divisions received that they earn.

     Financial relations in associations of the enterprises and the organizations are relations of the enterprises with the higher organization, in financial and industrial groups, and also holding. Financial relations of the enterprises with the higher organizations make relations concerning formation, and uses of the centralized monetary funds which in the conditions of market relations are objective necessity. Especially it concerns financings of investments, replenishments of circulating assets, financings of import operations, scientific researches, including marketing. Intrabranch redistribution of money resources, as a rule, plays an important role a returnable basis in management of the finance and promotes optimization of means of the enterprises.

     The Financial and industrial group is an association, on the one hand, the organizations having free money resources (banks, financial and investment funds etc.), and with another - the enterprises and the organizations, feeling requirement for investments and other extra means. The purpose of such association - development of the got directions of industrial production; association of financial efforts for development and manufacture support; reception of the maximum financial result. Here can be and the centralized monetary funds, and the commercial credit each other, and simply financial help. The same concerns also the relation between the enterprises in the conditions of holding. The holding is a corporation or the joint-stock company supervising affiliated joint-stock companies by means of possession by controlling stocks of their actions. Such way the holding exercises strategic administration, carries out uniform to the policy in the field of the general interests.

     Relations with financially-credit system of the state are diverse. This system includes following links: budgetary, credit, insurance, and also stock market.

Relations with budgets of various levels and with off-budget funds are connected with transfer of taxes and deductions.

The tax system of Kazakhstan is imperfect and doesn't promote normal industrial activity. World experience shows what to lower high rates of inflation it is possible only through support of manufacture and development of investments. On it the credit and customs policy should be directed basically tax, and also. In particular, in many countries the certain part or all gain of manufacture isn't assessed with taxes. It is favorable both to the enterprise, and the state as taxes from such enterprises arrive in full, and in a year they sharply increase. Proficiency of the budget at all doesn't mean that all is good, on the contrary: a science is not enough financed, and without it stable growth is impossible. A salary of state employees and pension at very low level, and without it stable sufficient demand for the domestic goods, development and economy growth is impossible.

     Financial relations of the enterprises with banks are under construction in the relation as storages of money resources in banks, the organizations of clearing settlements, and receptions and repayments of short-term and long-term credits. The organization of clearing settlements makes direct impact on a financial position of the enterprises. The credit is a source of formation of circulating assets, expansions of manufacture, its rhythm, improvement of quality of production, promotes elimination of time financial difficulties of the enterprises. Banks render now to the enterprises a number of so-called nonconventional services: leasing, factoring, forfeiting, a trust. At the same time there can be the independent companies specializing on performance of specified functions with which the enterprises have direct relations, passing bank.

     Now in relations of the enterprises with banks there is a number of serious problems. Practice of clearing settlements is primitive: an advance payment, barter, cash, the big non-payments. The credit very expensive, therefore its relative density at formation of circulating assets of the enterprises very low (on the average no more than 10 %). The long-term credit for financing of investments is insufficient. Nonconventional bank services also had no serious development.

     Relations with an insurance link of a financial system consist of transfers of means to social and medical insurance, and also insurance of property of the enterprise.

     Financial relations of the enterprises with stock market assume operations with securities. The stock market in Kazakhstan is developed insufficiently. (5, 247) 

     1.3 Functions of finance of enterprises.

     Finance of the enterprises carries out three functions:

• Providing;
• Distributive;
• Control.

     Providing function.

     Providing function of the finance of the enterprises assumes that the enterprise should be completely provided in the optimum size by necessary money resources at observance of very important principle: all expenses should be covered by own incomes. The time additional requirement for means becomes covered at the expense of the credit and other extra sources. Thus optimization of sources of money resources - one of the main tasks of management financial difficulties which can lead to serious consequences arise the finance of the enterprises as at surplus of means efficiency of use decreases, and at a lack-. Besides, optimization of sources of money resources - one of ways of reception of the highest financial result.

     Distributive function.

     Distributive function of the finance of the enterprises is closely connected with the providing. Distributive relations also seriously influence the end results. The distributed gain from production realization partially goes on compensation of expenses of the enterprise (the consumed means of production and a salary), and its other part represents profit. The profit is distributed between the enterprise and the budget. The financial mechanism of these relations includes:

• Dependence of a salary on utility of made production and receipt of payments for it;
• Well-founded distribution of profit between the enterprise, trade and banks at which the most part should get to the manufacturer;
• An objective reality of specifications of distribution of profit between the enterprises and budgets of various levels, and also the off-budget funds, assuming long duration and stability;
• Validity of deductions on accumulation (manufacture development) and consumption;
• Sufficiency of means for social needs, for research works, on a professional training and other purposes.

     Control function.

     Control function of the finance of the enterprises is connected with any application of stimulus and sanctions, and also corresponding indicators. If the enterprise in due time pays off with the budget, banks, suppliers, it thereby improves the end results, raises production efficiency and uses of means. Otherwise it is compelled to pay penalties, fines, penalties, there is an intense financial position, the end results worsen. One of forms of financial control is use of some financial indicators. The main thing from them is stable presence of means at the enterprise. In it interaction of control function of the finance with first two is shown; it is demonstration of financial control by currency. Other financial indicators concern: debts to suppliers, bank, the budget, workers, security of circulating assets corresponding sources, losses, liquidity, solvency, etc. (2, 64)

     Financial control by means of financial indicators is connected with presence of certain indicators of financial and economic activity. In the simplified variant these indicators the following: presence of means on accounts in banks, debts to suppliers, banks, budgets, workers on a salary. When indicators reflect debts increase, hence, and insolvency of the enterprise. At the same time the same indicators exists much enough, and they show various aspects of activity of the enterprise. It is possible to present them in the form of following groups of indicators:

• A property condition (structure of actives, a net wealth, factor of real cost of property of industrial appointment);
• Liquidities and solvency (factors of liquidity, security own means, coverings, etc.);
• Capital structures (factors of an autonomy, a parity of extra and own means, the financial lever, etc.);
• Conditions of circulating assets and types of financial stability (pure working capital, structure of sources of circulating assets, surplus or a lack of circulating assets);
• Turnover of means (quantity of turns, duration of one turn, relative and absolute liberation of circulating assets);
• Rationing of circulating assets (norm in relative sizes, specifications in money terms; current, insurance, transport and technological stocks; factor of increase of expenses);
• The administrative account (variables and constant expenses, marginal income, the relative income, the transfer relation - the operational lever, a break-even point, a safety zone);
• Profitability (production, sales, actives, own means, etc.);
• Monetary streams (inflows and outflows of the means, the resulted cost, the rate and factor of discounting, etc.);
• Investment activity;
• Other indicators.

     Thus, control function of the finance allows to reveal, first of all, results of work of the enterprises, lacks of their activity, and then to take necessary measures on position improvement.

     Control function of the finance at nation-wide level is shown in the organization of monetary streams, in timely formation of the centralized monetary funds both the most rational and their economical use, in creation of certain conditions for sphere of production of goods.

     In the conditions of modern so-called market economy the finance carries out within the limits of control function important enough minorant function connected with counteraction to legalization (washing up) of incomes, received by a criminal way. Financial control here in a greater degree carries administrative, instead of economic character. Necessity of its strengthening has been caused by considerable growth of the specified phenomena. (3, 315)

     Chapter 2. Features of organization of finance of medium and large business.

     Organizational-legal forms of the enterprises define their financial features. It is very important to allocate the general characteristic features of the finance of the enterprises of modern organizational-legal forms and to establish the basic distinctions which define a choice of this or that form.

     Practice shows that if the enterprises don't consider those or other financial features, characteristic for the form chosen by them it leads to conflicts between proprietors, managing directors and workers. The Organizational-legal form of the enterprise fixed in its constituent documents, should correspond to requirements of acts completely.

     The organizational-legal form of the enterprise fixed in its constituent documents, should correspond to requirements of acts completely.

     Let's consider features of the organization of the finance at the enterprises of various organizational-legal forms of managing.

     According to the Civil code enterprise activity can conduct:

• Separate physical persons (citizens) without formation of the legal entity from the moment of the state registration as the individual businessman;
• Legal bodies.

     The individual businessman doesn't have in comparison with the legal body such important sign, as property isolation.

     The legal body the organization which has in the property, economic conducting or an operational administration the isolated property admits and answers under the obligations with this property. It has the right to get and carry out on its own behalf the property and personal non-property rights, to perform duties, to be the claimant and the respondent in court. Legal bodies should have independent balance or the estimate.

     The commercial and noncommercial organizations can be legal bodies.

     Main objective of activity of the commercial organizations is profit extraction. The noncommercial organizations are created for the sake of achievement of a specific goal and can carry out enterprise activity only for its achievement.

     The legal body is subject to the state registration and it is considered created from the moment of its registration.

     The commercial organizations are created in the form of economic associations and societies, production co-operatives, the state and municipal unitary enterprises.

     Classification of the organizations by patterns of ownership:

1. Economic associations

• General partnership

• Trust partnership

2. Economic companies

• Limited liability company (LLC)
• Open joint-stock company (OJSC) / closed joint-stock company (CJSC)
• The company with additional responsibility (CWAR)

3. Production cooperatives

4. The Unitary enterprises

• State

• Municipal (6, 243)

     2.1 Finance of economic associations.

     Full associations and a general partnership or special partnership concern to them.

     The full association is an association of citizens which are engaged in enterprise activity according to the prisoner between them articles of incorporation on behalf of association and bear responsibility under its obligations property belonging to them. Management of activity of full association is carried out under the general coordination of all participants.

     The authorized capital stock of full association is created at the expense of contributions of participants and in essence is share capital. By the time of registration of full association its participants are obliged to bring not less than half of contribution in share capital. Other part should be brought in the terms stipulated in articles of incorporation.

     Participants of full association bear subsidiary responsibility under association obligations, i.e. not only association property, but also the personal property.

     The profit (losses) of full association is distributed between its participants of proportionally share of their participation in share capital. If as a result of unprofitable activity of association cost of a net wealth of association became less sizes share capital the got profit isn't distributed between participants, and goes first of all on increase in a net wealth to the size exceeding the size of share capital.

     General partnership (special partnership) – association in which along with full companions there are participants-investors. The General partnership is created and carries out the activity on the basis of articles of incorporation. In articles of incorporation conditions, size and structure of share capital, terms and an order of entering of shares of each companion are defined. The order of formation of an authorized capital stock is similar to an order of its formation in full association.

     Management of association activity is carried out only by full companions. Investors don't participate in management.

     Full companions – the participants who are carrying out the activity and answering for obligations association by the property on behalf of association.

     Participants-investors don't accept participation in enterprise activity of association and are in effect investors. They divide there have arrived associations, bear the liability for damages, the associations connected with activity, within size of the contribution brought by it. 

     2.2 Finance of companies with limited and additional liability.

     Limited liability company - a society founded by one or several persons, which authorized capital stock it is divided into shares in the sizes defined by constituent documents. Participants of limited liability company answer under its obligations and bear risk of the losses connected with activity of a society within cost of contributions brought by them that is important advantage in comparison with full association.

     The limited liability company authorized capital stock is formed at the expense of contributions of its participants. The authorized capital stock size defines the minimum size of property guaranteeing interests of its creditors.

     The limited liability company authorized capital stock can be increased at the expense of additional payments of its participants according to the law «About limited liability companies».

     The company profit is defined in a generally established order. Distribution have arrived in limited liability company it is carried out according to the legislation. First of all from profit the profit tax and other payments in the budget are paid. Further the profit is distributed according to the order established in the charter of a company, on industrial and social development. The Rest is distributed between participants of a society of proportionally their share in an authorized capital stock if other isn't stipulated in constituent documents. In the event that in the charter the order of distribution of profit, being at the command societies isn't stipulated, the decision on its distribution should be accepted annually by meeting of founders. The unallotted profit of last years is a source of formation of the reserve capital. (10, 139)

     Company with additional responsibility - a company founded by one or several persons, which authorized capital stock it is divided into shares in the sizes defined by constituent documents. Its participants bear solidary subsidiary responsibility under company obligations the property in the multiple size identical to all to cost of their contributions. Cost of contributions is defined by constituent documents. In case of bankruptcy of one of participants its responsibility under society obligations is distributed between participants to proportionally their dale in an authorized capital stock. All questions connected with distribution of profit, dare similarly to how they are defined for limited liability company.

     Unlike limited liability companies in companies with additional responsibility its participants, at insufficiency of property of a society, answer for obligations before its creditors the property in the multiple size identical to all participants to the sum of contributions of an authorized capital stock, that is bear subsidiary responsibility under its obligations the property, is similar to participants of full associations and full companions in special partnerships. (13, 57) 

     2.3 Finance of joint-stock companies.

     Joint-stock company - a society, which authorized capital (joint-stock) is divided into certain quantity of actions. Shareholders (participants of joint-stock company) don't answer for obligations joint-stock company and bear responsibility within cost of actions belonging to them. The right to a share of the property of the shareholder proves to be true its share in a share capital. Each holder of actions possesses a part of property of joint-stock company according to a share of its actions in total of the actions released. In this sense the joint-stock company doesn't have own property. The joint-stock company legal status is defined by the Civil code and the law «About joint-stock companies».

     Open joint-stock company – a company which participants can sell actions belonging to them without the consent of other shareholders. The open joint-stock company can carry out an open subscription to actions let out by it and to carry out their free sale in stock market on the conditions established by the law and other legal certificates. The minimum size of an authorized capital stock of open joint-stock company is established at a rate of 1000 minimum wage rates at date of society registration. At floating of a joint-stock company its actions should be distributed among participants. In a case if after the termination of the second and any next year cost of a net wealth of a society becomes less authorized capital stock the society is obliged to declare and register when due hereunder authorized capital stock reduction. If cost of a net wealth of a society appears less the than minimum size of an authorized capital stock defined by the law such society is subject to liquidation.

     Increase an authorized capital stock joint-stock company can in two ways –  by means of increase in face value of already available actions and by an additional share issue. Such decision can be accepted only after full payment of an authorized capital stock. The authorized capital stock increase isn't supposed with a view of a covering of the losses suffered by it. At change of quantity or the price of actions of a society for increase in its authorized capital stock there is an object of taxation on operation with securities.

     The authorized capital stock is formed by placing simple and preference shares. And the share of preference shares shouldn't exceed 25 %. The Authorized capital stock goes on formation of production assets of a society.

     The joint-stock company profit is defined and assessed with the profit tax in the same order, as for limited liability companies, however the further distribution of profit has the features. At distribution have arrived in a legislative order formation of reserve fund is provided. The financial reserve is intended for a covering of losses of joint-stock company, and also can be used on payment of dividends in the event that profits of fiscal year for this purpose insufficiently. Besides, from profit other funds similar to the reserve can be generated. For example, redemption fund which is created at the expense of deductions from profit in the size necessary for accumulation of the sum which in a consequence is used on repayment of the let out and placed bonds. Other part of profit goes on the expenses connected with development of manufacture, for social development and payment of percent on bonds and dividends under actions.

     The closed joint-stock company – a company which actions extend only among its founders or other, in advance certain circle of persons. Such company hasn't the right to carry out an open subscription to actions let out by it or otherwise to offer them for acquisition to an unlimited circle of persons. Shareholders of the closed joint-stock company possess the right of priority of acquisition of the actions sold by other shareholders. The authorized capital stock of the closed joint-stock company can't be less than 100 minimum wage rates established at the moment of its registration. The number of participants of the closed joint-stock company is established by the law on joint-stock company, in case of excess of number of participants the closed joint-stock company is subject to transformation to open joint-stock company within a year, and after this term – liquidations if the number of shareholders doesn't decrease to the quantity established by the law. (12, 313) 

     2.4 Finance of production cooperatives.

     Production cooperative - voluntary association of citizens on the basis of membership for the joint industrial or other economic activities, based on their personal labor or other participation and association of property shares.

     The production cooperative has a number of financial features.

     The production cooperative differs from economic societies and associations first of all that is based on voluntary association of the citizens who are not individual businessmen. The production cooperative —  mainly association of persons, instead of capitals, it predetermines also the right of participation of members of cooperative society in board: each member of cooperative society has one voice irrespective of the size of the property share.

     By the time of cooperative society registration its each member is obliged to bring not less than 10 % of the share, and other part - within a year from the moment of registration.

     The profit in production cooperative is created by own work of its members by association of their personal efforts in industrial activity. Participation of members of production cooperative in industrial activity can be expressed in different forms, including by granting of the financial capital; Thus according to the law «About production co-operatives» restrictions on quantity of members of the cooperative society which is not accepting personal participation in its activity are established: the maximum quantity of "financial participants» shouldn't exceed 25 % of number of members of the cooperative society taking personal labor part in its activity.

     Sources of formation of financial resources in production cooperative are; shares of members of cooperative society; incomes of own activity; credits: the property transferred in gift physical or legal bodies, and also other sources which have been not forbidden by the legislation.

     Money, securities, other property, including property rights and other objects of civil law can be a share. Shares form share fund of production cooperative. Inherently this same, as an authorized capital stock in an economic society.

     Along with share funds in production cooperative according to its charter other funds, including indivisible can be created.

     The indivisible fund in production cooperative is the part of its property having concrete appointment which should be specified in the charter. The indivisible fund joins in structure of a net wealth at definition of the size of the share. The member of cooperative society has no right to indivisible funds.

     One more financial feature of production cooperative defined by the Civil code, — subsidiary (additional) responsibility of a member of cooperative society for obligations of this cooperative society. The size and order of subsidiary responsibility is defined according to the Civil code and the law «About production co-operatives». The law, in turn, refers to the cooperative society charter, demanding, that it has defined the size and conditions of subsidiary responsibility, i.e. the Law doesn't limit members of cooperative society in a choice of the size of responsibility: it can be an equivalent of a share or the revenue, or the fixed sum having nominal character.

     The profit, being at the command cooperative society after payment of taxes and other obligatory payments and deductions, is distributed between its members according to their personal labor participation, and between the members of cooperative society who are not accepting personal labor participation in its activity, — according to the size of their share. The order of distribution of profit is provided by the cooperative society charter. However the size of the profit distributed between members of cooperative society to proportionally sizes of their share, shouldn't exceed 50 % of the profit which are subject to distribution. (9, 463) 

     2.5 Finance of unitary enterprises

      The unitary enterprise - the commercial organization which has been not allocated with the property right on fixed for it by the proprietor property. Distinguish the unitary enterprises on the right of economic conducting and on the operational administration right. The state and municipal enterprises concern number of the unitary enterprises.

      The civil legislation provides possibility of functioning of the unitary enterprise as the commercial organization.

      The unitary enterprise based on the right of economic conducting, is created under the decision of the authorized state or municipal body. Accordingly the property of the unitary enterprise is in the state or municipal property. The unitary enterprise answers under the obligations with all property belonging to it, but doesn't bear responsibility under obligations of the proprietor of property. In turn the proprietor doesn't answer for obligations the enterprise. The head who is appointed by the proprietor or the body authorized by the proprietor operates the unitary enterprise. The size of the authorized capital of the unitary enterprise should be not less than the size defined in the law on the state and municipal unitary enterprises. The authorized fund should be completely paid by the time of the state registration of the unitary enterprise. If by results of a fiscal year cost of a net wealth of the enterprise becomes less sizes of the authorized capital last should be accordingly reduced.

      In the form of the unitary enterprises the state and municipal enterprises can be created only.

      The property of the state and municipal unitary enterprise is accordingly in the state and municipal property and belongs to such enterprise on the right of economic conducting or an operational administration.

      At creation of the unitary enterprise to it means from the state or local budget for authorized capital formation are allocated. The size of the authorized capital, an order and sources of its formation are specified in the charter of the unitary enterprise.

      Responsibility of the unitary enterprise for the obligations also depends on that, it is based on the right of economic conducting or an operational administration.

      The right of economic conducting gives to the unitary enterprise wider rights in management of the finance, property.

      The size of the authorized capital of the unitary enterprise based on the right of economic conducting, can't be less the sum defined by the law on the state and municipal unitary enterprises.

      Under the decision of Government of RK on the basis of the property which is in state ownership, the unitary enterprise based on the right of an operational administration, — the state enterprise can be formed.

      Government of RK the decision «About an order of planning and financing of activity of state factories (state factories, state economy)» has confirmed an order of planning and financing of activity of the state enterprises. In particular, it is established that is industrial-economic activities state factory is carried out according to the plan-order and the factory plan for development. It has the right to carry out the independent economic activities resolved by the state authorized body. Mutual relations of factory with suppliers of resources and production consumers are under construction on a contractual basis.