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The Civil Code of the Russian Federation

(with the Additions and Amendments of February 20, August 12, 1996,
October 24, 1997, July 8, December 17, 1999, April 16, May 15,
November 26, 2001, March 21, November 14, 26, 2002,
January 10, March 26, November 11, December 23, 2003)

Part I
Section II
Chapter 19
The Right of Economic Management and the Right of Operation Management

Chapter 19. The Right of Economic Management and the Right of Operation Management

Article 294. The Right of Economic Management


The state or the municipal unitary enterprise, which owns the property by the right of economic management, shall possess, use and dispose of this property within the limits, defined in conformity with the present Code.

Article 295. The Rights of the Owner with Respect to the Property in Economic Management


1. The owner of the property in economic management, in conformity with the law, shall resolve the issues, involved in the setting up of the enterprise, in defining the object and the goals of its activity, in its reorganization and liquidation; he shall appoint the director (the head) of the enterprise and shall exert control over the use in conformity with the stipulated purpose and over the maintenance of the property, assigned to it. The owner shall have the right to obtain a part of the profit, derived from the use of the property in the economic management of the enterprise.
2. The enterprise shall not have the right to sell the immovable property, belonging to it by the right of economic management, to give it in rent, to mortgage it, to contribute it as an investment into the authorized (joint) capital of the economic companies and the partnerships, or to dispose of it in any other way without the consent of the owner. The enterprise shall dispose of the rest of the property, belonging to it, independently, with the exception of the cases, established by the law or by the other legal acts.

Article 296. The Right of Operation Management


1. The state enterprises, as well as the institutions, shall exert with respect to the property, assigned to them, within the range, established by the law, and in conformity with the goals of their activity, the orders of the owner and the purpose of the property, the rights of its possession, use and disposal.
2. The owner of the property, assigned to the state enterprise or institution, shall have the right to withdraw the property, which is superfluous, unused or used other than for the stipulated purpose, and to dispose of it at his own discretion.

Article 297. Disposal of the Property of the State Enterprise


1. The state enterprise shall have the right to alienate or to dispose in another way of the property, assigned to it, only with the consent of the owner of this property. The state enterprise shall independently realize the products it manufactures, unless otherwise established by the law or by the other legal acts.
2. The order for the distribution of the incomes of the state enterprise shall be defined by the owner of its property.

Article 298. Disposal of the Property of the Institution


1. The institution shall not have the right to alienate or to dispose in any other way of the property, assigned to it, and also of the property it has acquired at the expense of the means, allocated to it by an estimate.
2. If, in conformity with the constituent documents, the institution has been granted the right to engage in a profitable activity, the incomes, derived from such an activity, and the property, acquired at the expense of these incomes, shall be independently disposed of by the institution and shall be registered on a separate balance.

Article 299. The Acquisition and the Termination of the Right of Economic Management and of the Right of Operation Management


1. The right of economic management or the right of operation management of the property, with respect to which the owner has adopted the decision to assign it to a unitary enterprise or to an institution, shall arise with the given enterprise or institution from the moment of the transfer of this property, unless otherwise established by the law and by the other legal acts, or by the owner's decision.
2. The fruits, products and incomes from the use of the property in the economic or in the operation management, as well as the property, which the unitary enterprise or the institution has acquired by a contract or on the other grounds, shall pass into the economic or into the operation management of the enterprise or of the institution in conformity with the order, established by the present Code, by the other laws and the other legal acts for the acquisition of the right of ownership.
3. The right of economic management and the right of operation management shall be terminated on the grounds and in conformity with the order, stipulated by the present Code, by the other laws and the other legal acts for the termination of the right of ownership, and also in the case of the lawful withdrawal of the property from the enterprise or from the institution by the owner's decision.

Article 300. Preservation of the Rights to the Property When the Enterprise or the Institution Is Transferred to Another Owner


1. When the right of the ownership to the state or to the municipal enterprise as a property complex is transferred to another owner of the state or of the municipal property, such an enterprise shall preserve the right of economic management to the property, belonging to it.
2. When the right of the ownership to the institution is transferred to another person, this institution shall preserve the right of operation management with respect to the property, belonging to it.

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