Moscow's city-property enterprise has been converted into a joint-stock company

The conversion removes a number of restrictions that attach to the status of a state unitary enterprise, and opens new possibilities in the capacity of a joint-stock company.

The restrictions on a state unitary enterprise:

• Its activity is strictly regulated by the legislation on state property.

• Any operation requires the approval of the founder (the city authorities), which slows the taking of decisions.

Investors cannot be brought in, securities cannot be issued, and the charter capital cannot be changed, without the state's approval.

The possibilities of a joint-stock company:

• A joint-stock company may take its own decisions within the limits of its corporate charter.

• It can raise private capital and issue shares or bonds in order to finance projects.

• A joint-stock company has greater freedom to change its management structure.

The conversion of the state unitary enterprise TsUGI into a joint-stock company may point to an intention to attract private investment, so as to speed up the development of properties that had previously been kept "on hold".

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