Chapter 19. The right of economic management, the right of operational management.

Article 294. The right of economic management.
The state or municipal unitary enterprise to which the property belongs by the right of economic management, owns, uses and disposes of this property to the extent determined in accordance with this Code.

Article 295. The rights of the owner in respect of property under economic management.
1. In accordance with the law, the owner of property under economic management decides on the creation of an enterprise, the definition of the object and purpose of its activity, its reorganization and liquidation, appoints the director (manager) of the enterprise, monitors the use and purpose of the property belonging to the enterprise. The owner has the right to receive part of the profits from the use of property under the economic jurisdiction of the enterprise. 2. An enterprise shall not have the right to sell real estate belonging to it on the right of economic management, lease it, pledge it, contribute as a contribution to the authorized (share) capital of business companies and partnerships or otherwise dispose of this property without the owner’s consent. It manages the rest of the property belonging to the enterprise independently, with the exception of cases established by law or other legal acts.

Article 296. Right of operational management.
1. The state-owned enterprise, as well as the institution with respect to the property assigned to them, shall exercise, within the limits established by law, in accordance with the goals of their activities, the tasks of the owner and the purpose of the property, the right to own, use and dispose of them. 2. The owner of the property assigned to a state-owned enterprise or institution shall have the right to withdraw property that is unnecessary, unused or used for other purposes, and dispose of it at its discretion.

Article 297. Disposition of the property of a state-owned enterprise.
1. The state-owned enterprise has the right to alienate or otherwise dispose of the property assigned to it only with the consent of the owner of this property. The state-owned enterprise independently sells its products, unless otherwise provided by law or other legal acts. 2. The procedure for the distribution of revenues of a state-owned enterprise is determined by the owner of his property.

Article 298. Disposition of the property of the institution.
1. The institution shall not have the right to alienate or otherwise dispose of the property assigned to it and the property acquired at the expense of the funds allocated to it according to the estimate. 2. If, in accordance with the constituent documents, the institution is granted the right to carry out income-generating activities, then the income received from such activities, and the property acquired from these revenues, will be transferred to the institution’s independent disposal and recorded on a separate balance sheet.

Article 299. The acquisition and termination of the right of economic management and the right of operational management.
1. The right of economic management or the right of operational management of property, in relation to which the owner has decided to assign to a unitary enterprise or institution, arises from this enterprise or institution from the moment of transfer of property, unless otherwise provided by law and other legal acts or decision of the owner. 2. Fruits, products and income from the use of property under economic management or operational management, as well as property acquired by a unitary enterprise or institution under a contract or other grounds, shall come into economic management or operational management of an enterprise or institution in the manner established by this Code , other laws and other legal acts for the acquisition of property rights. 3. The right of economic management and the right of operational management of property shall be terminated on the grounds and in the manner prescribed by this Code, other laws and other legal acts to terminate the right of ownership, as well as in cases of lawful withdrawal of property from an enterprise or institution by decision of the owner.

Article 300. The preservation of rights to property upon the transition of an enterprise or institution to another owner.
1. Upon transfer of ownership of a state or municipal enterprise as a property complex to another owner of state or municipal property, such an enterprise shall retain the right of economic management or the right of operational management of property belonging to it. 2. In the event of transfer of ownership of the institution to another person, this institution shall retain the right of operational management to the property belonging to it.

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