Mixed Companies

Mixed Companies

 

(1) A form of organization of joint-stock companies, in which the state acts as a partner of private capital. As the owner of a bloc of shares, the state participates in managing the company, in appointing and replacing its directors, and in determining the direction and results of its activity.

During the early and middle 20th century mixed companies were established in sectors of the economy in which the state played the role of a major customer or trading partner (war industries, railroad transport, and finance, for example). In a number of countries, mixed companies were established to avoid the complete nationalization of sectors of the economy. However, in Western Europe after World War II (1939–45), nationalization was carried out in certain sectors of the economy in which mixed companies were functioning (for example, railroad transport, branches of the war industry, and part of the power industry). The increase in mixed companies since the 1950’s and 1960’s, as well as in the spheres in which they are common, is evidence of their transformation into an integral part of the structure of contemporary state-monopoly capitalism. In Italy, for example, the largest industrial associations, such as the National Hydrocarbons Board (ENI; oil refining and petrochemicals), Italsider (metallurgy), and Sidelor (electric power), are headed by companies in which the state owns a controlling bloc of shares and private capital acts as a co-owner. The principal holding companies extend their influence to a wide range of private capitalist companies by means of a holding system: In France, mixed companies have become common in the power and petrochemical industries. In Great Britain and the Federal Republic of Germany (FRG) mixed companies are growing in number and influence. The state’s participation in mixed companies, a form of state regulation in the contemporary stage of the general crisis of capitalism, is directed at realizing the interests of the bourgeoisie.

By acting as private capital’s partner in mixed companies, the state in the developing countries promotes the kind of formation and orientation of capital investments that accelerates economic growth, raises the rate of accumulation in the national income, and helps control prices. In a number of countries, including India and Burma, participation by the state in the ownership of foreign monopolies has become common. In cases where for some reason the state does not undertake direct nationalization of foreign enterprises, its participation as a shareholder, especially if it owns a controlling bloc, permits it to counteract antinational, predatory tendencies in the activity of foreign monopolies.

Some mixed companies, such as Intelsat, an international communications satellite company, are owned jointly by several states.

Mixed companies were permitted in the USSR after the transition to NEP, in order to make possible the use of private capital in restoring the national economy, with the state playing the leading role. Formed primarily in foreign trade, mixed companies facilitated exports to the world market by Soviet foreign trade organizations, such as Amtorg.

Since the late 1960’s and early 1970’s the mixed company has been widely used as an organizational form by the socialist countries, primarily through the participation of state enterprises or associations in private joint-stock companies in the capitalist and developing countries. The purpose of this type of mixed company is the development of economic relations, including trade. The socialist states participate in joint-stock marketing enterprises abroad, as well as in financial organizations that provide credit for foreign trade. Mixed joint-stock marketing companies, with capital investments contributed by appropriate foreign trade associations representing the USSR, have been formed in Finland (Teboil, Suomenpetroli), Belgium (Nafta, Scaldia-Volga), and France (Aktif-Avto), as well as in the FRG, Italy, Sweden, Norway, and a number of other capitalist countries.

In some socialist countries, including Rumania and Yugoslavia, mixed companies are a form of participation in state companies by private capital from capitalist countries. Under this arrangement, the socialist state’s control over the activity of the enterprise is ensured.

(2) A form of joint participation by two or more private companies in the share capital of an enterprise, resulting in a mixed (dual or triple) subordination of the enterprise. During the 1960’s and 1970’s this form was used by international monopolies to penetrate the economies of national states.

REFERENCE

Gosudarstvennaia sobstvennost’ i antimonopolisticheskaia bor’ba v stranakh razvitogo kapitalisma. Moscow, 1973.

IU. B. KOCHEVRIN

References in classic literature ?
It is as easy to broach in mixed companies what is called "the subject of religion." A susceptible person does not like to indulge his tastes in this kind without the apology of some trivial necessity: he goes to see a wood-lot, or to look at the crops, or to fetch a plant or a mineral from a remote locality, or he carries a fowling-piece or a fishing-rod.
He pointed out that success will depend on the entire Operational Coordination team knowing and getting involved in the projects, as the objective is to deliver the oil produced by the production units and the mixed companies.
With the Tax Reform and AHV Financing (STAF) submission, the Confederation abolishes the internationally untenable preferential taxation for holding, domiciled and mixed companies. In the future, these status companies will have to pay more taxes, that is, the same as all other companies.
The big part of the tax revenues came from corporate tax, which stood at RO451.698 million including RO153.433 million collected taxes from Omani companies and establishments, RO245.430 million collected from the mixed companies and establishments, RO32.515 million collected from the foreign companies and establishments and RO20.318 million collected taxes from the companies and establishments established in the Sultanate.
There are almost 100 active permits and EPSAs with 60 companies, of which four are Tunisians and the remaining are foreign or mixed companies.
"We are also seeking to establish communication between the Lebanese state media institutions and their Mexican counterparts, in order to introduce both people to the available capacities on all economic, social, artistic, scientific, and financial levels, especially that we are trying to open a Lebanon bank in Mexico and mixed companies to establish a direct maritime line and to ink agreements related to universities," he added.
"This exclusive program to ready mixed companies will provide additional benefits to membership, while also helping NRMCA grow its membership nationally," adds NRMCA Senior Vice President, Membership Kathleen Carr-Smith.--www.petrocon.org/nrmca.html
In this culminating phase, the two mixed companies of the participating contingents operated under a joint command, where all elements such as recce, cordon, planning, support team of the two were integrated for the joint operations.
"Most commodities traders in Switzerland call themselves 'mixed companies,' which do more than 80 percent of their actual business abroad and, as a result, only pay taxes on a portion of profits," the article explains.
Accountability and governance in local public services: the particular case of mixed companies
Until now, they had focused on certain cantonal measures relating to holdings, domiciliation companies and mixed companies. But these are not the only "tax regimes which are potentially harmful" to the competition that they keep in force, they consider.
Therefore, we encourage an organized approach to exporting Macedonian products to the Albanian market, direct investments of Macedonian firms in Albania and vice versa, as well as establishing mixed companies. This encouragement is not only verbal but draws upon real efforts for creating a favorable investment climate," Ivanov said.