EXAMPLES OF THE UNIFORM MANAGEMENT OF LOCAL
GOVERNMENT OWNED COMPANIES IN HUNGARY
Diószeginé Zen ay É a
Uni e si y o Deb ecen, [email p o ec ed]
Keywo ds: holding, uni o m managemen , local go e nmen
Abs ac : I is a end in Hunga y in he 21s cen u y ha he local go e nmen owned business o ganisa ions
a e uni o mly managed. The success ul implemen a ion o he uni o m managemen sys em p o ides he ci y
and i s ci izens wi h g ea economic ad an age. Di e en al e na i es may be ound wi hin he domes ic
p ac ices o he uni o m co po a e managemen ; howe e , he expe ience so a imply ha managemen
wi hin he amewo k o a holding sys em enables he mos e icien ope a ion o he asse s o he local
go e nmen s.
In e na ional and domes ic examples likewise p o e ha he local go e nmen s a e
no able o p ope ly manage and con ol hei economic o ganisa ions wi hin he adi ional
amewo k due o hei se e al o he base asks. The local go e nmen shall keep hei
main powe s ela ed o hei owne ship igh s by es ablishing he uni o m managemen
model; howe e , he managemen , coo dina ion and con olling asks ela ed o he
companies a e delega ed o ano he o ganisa ion specialised in he ield ou side he local
go e nmen .
Se e al ad an ages o he uni o m managemen o he local go e nmen owned
companies a e known. The in e es en o ceabili y o he owne inc eases, asse
managemen becomes mo e e ec i e, sa ings a e ealised h ough syne gies, and he
le el o he se ices is imp o ed. While he employees o he o ganisa ion pe o ming he
uni o m managemen pe o m expe managemen , he expec a ions owa ds he
economic o ganisa ions a e di e en ia ed; and so hey may be inci ed o he e icien
ope a ion, and o he highe le el sa is ac ion o he consume needs.
As a esul o he uni o m managemen :
 he owne ’s in e es en o cemen abili y o he local go e nmen inc eases;
 he s a egic managemen and con ol o he companies is es ablished;
 he ope a ion o he local go e nmen companies becomes mo e anspa en ;
 he e iciency o he ope a ion o he companies imp o es;
 he e iciency o he asse managemen imp o es, and he managemen o he local
go e nmen asse s in an en ep eneu ial a i ude becomes possible;
 he es ablishmen o he condi ions o he ope a ion o he new local go e nmen
in es men s and companies, and he employmen o he ende oppo uni ies
becomes easie ;
 he wo k o he local go e nmen owned ins i u ions and companies wi h simila
p o ile (e.g. public educa ion and spo s) may be ha monised;
 sa ings de i ing om he join ope a ion may be u ilised;
 he le el o he se ices o he public imp o es;
 he uni o m IT sys em o he companies may be implemen ed;
 he ope a ional and de elopmen suppo o he local go e nmen may dec ease o
ex inguish as a esul o he a ailable economic sa ings and h ough he be e ing
p o i abili y, ha is, he company g oup may become sel inancing.
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The al e na i es o he uni o m managemen :
The e a e di e en al e na i es o he uni o m managemen , which a e all success ul wi hin
he in e na ional and Hunga ian p ac ices. The al e na i es o he uni o m managemen a e
as ollows:
 Uni o m company: The di e en business ac i i y a eas ( he p esen companies)
a e uni ied in o one business o ganisa ion, ha is, hei p e ious legal
independence ex inguish. A uni o m company may be es ablished i he local
go e nmen has 100% owne ship in all o he companies o be in ol ed in he
me ge .
 Company g oup: conse n ype managemen : he managing company has double
unc ion: i s o all, hey pe o m he basic ac i i y wi hin he amewo k o he
company, and hey likewise pe o m he managemen o legally independen
companies.
 Company g oup: holding ype managemen .
In he li e a u e he concep o a conce n is de ined clea ly, whe eas no
s anda dised in e p e a ion has been es ablished ega ding he concep o he holding
ei he in heo e ical o in p ac ical sphe es. The Holding means such a company g oup,
whe e he cen e basically inancially manages (as an owne , ~ as an asse manage ) he
o he wise sepa a e economic o ganisa ions wi h legal en i y, holding a po olio a i ude,
wi hou pe o ming any basic ac i i y. A holding is he managing company o a conce n,
and likewise he en i e company g oup is p o ided he same name. When examining he
o iginal meaning o he holding, we may encoun e a concep de ini ion, acco ding o which
he holding is such a managing company, which manages he membe companies only
wi h he ools o asse managemen on he basis o i s sha e wi hin he membe
companies. Howe e , we shall no e wi h ega d o his de ini ion, ha he managing
company does no only apply asse managemen in many cases ela ed o he companies
managed, bu hey en o ce o he aspec as well du ing hei managemen . Acco ding o he
mos commonly accep ed de ini ion o he holding, i is he legally sepa a ed managing
company o he conce n, which manages he whole conce n o ganisa ion wi h s a egic
and/o inancial-asse managemen ools. In case o a holding, he managing company
only pe o ms he managemen o he membe companies and i does no pe o m any
basic ac i i y. All he economic uni s pe o ming basic ac i i ies a e legally independen .
We may encoun e wo solu ions when es ablishing a holding. Fi s , he holding is c ea ed
by using one o he local go e nmen companies by sepa a ing he basic ac i i y. The o he
solu ion, which is mo e commonly applied in p ac ice, is when he local go e nmen
es ablishes a b and new business o ganisa ion and hey empowe his company o
p ac ice he owne ship igh s.
In Hunga y i was Deb ecen, who i s commi ed hemsel es o in oduce he new
company managemen a i ude back in 2000. The managemen and he asse
managemen o he 100% local go e nmen owned sha eholding companies and limi ed
liabili y companies a e pe o med by a sepa a e p i a e limi ed company (sha eholding
company es ablished wi h closed ounda ion) ounded o his eason. In Miskolc, he local
go e nmen decided o launch uni o m managemen in 2006, in case o which he
o ma ion o he holding sys em and he implemen a ion o he managemen is a he
simila o he one in Deb ecen. The eason he eo is ha he Deb ecen Asse
Managemen Plc. (Deb eceni Vagyonkezelő R .) holds an ou s anding ole among he
solu ions p o ided o he asse managemen o he sha eholding o he local go e nmen
companies conside ing he size, he signi icance and he ealised esul s he eo , and
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likewise he expe eam suppo ing he ounda ion he eo pa icipa ed in he o ma ion o
he holding s uc u e in bo h ci ies. The Deb ecen ‘ ecipe’ is sp eading; he ones in powe
(independen on hei pa ies) a e de o ed ollowe s o he holding s uc u e in case o
se e al local go e nmen s h oughou he coun y. In 2004, Székes ehé á decided o
o m a cons uc ion simila o he one in Deb ecen. Howe e , his managemen s uc u e
did no ul il hei expec a ions; he e o e, hey e mina ed i la e on.
The ad an ages o he holding s uc u e:
 I means a managemen o m wi hou he bu den o any basic ac i i y neu al o he
companies pe o ming he e ogeneous business ac i i ies.
 The holding may media e and ha monise bo h he p o essional in e es s o he
membe companies and he s a egic in e es s o he owne s objec i ely.
 The aim o he es ablishmen o he holding is o imp o e he managemen , wi h
special espec o he inancial managemen o he membe companies by ac ually
p ac icing he owne ship unc ions wi h he suppo o co po a e planning and
con olling ools and o ake an ac i e pa in he o ma ion o hei u u e.
 Howe e , he holding is an economic o ganisa ion i sel as well. I is open
indi idually as an o ganisa ion es ablished o asse managemen . Con a y o i s
membe companies, he hinking cons ain s de i ing om he business ac i i y and
he p o ession o he expe s a do no bind he holding. The e o e, i may be
explici ly open o ei he money ma ke ope a ions, company buyou s o o he
managemen o he bank up cy p ocedu es o o he companies.
 The holding clea ly only manages, i ahs no ole con usions on managemen le els
and no con lic s o in e es a ise wi hin he o ganisa ion.
 The pe o mance o he companies may be seen wi hou dis o ion as each o he
membe companies p epa e hei own balance shee , ha is hey ha e
ex ao dina y anspa ency. This is an ine i able expec a ion owa ds uni o m
managemen o he owne o ound hei decisions.
 I has excellen s a egic and business lexibili y as i may adap o he legal
egula o y en i onmen and o he p e ailing s a egies o he own as well. The
holding may ac success ully on he money ma ke s. I is lexible in pa icipa ing
wi hin public p ocu emen o o he ende s; he e o e, i has ad an ageous
condi ions compa ed o conse n and uni o m companies.
 E icien money managemen may be achie ed by he es ablishmen o he easu y
unc ion and he cash-pool sys em.
 The e may be an oppo uni y o he ope a ion o a so called ‘in e nal bank’, ha is
he membe companies may p o ide loans o one ano he upon e ms and
condi ions ad an ageous o bo h pa ies.
 I is a o m ope a i e on he long un (i is no a empo a y o m), he holding may
p o ide a good ope a ion amewo k o he company g oup.
Disad an ages:
 The es ablishmen gene a es g ea expenses.
 The ope a ion is expec ed o be a highe cos compa ed o a uni o med company
due o he s a cos s o he supe iso y boa ds and audi o s, and likewise he ime
need o he echnical ealisa ion o he membe mee ings may inc ease he lead
ime o he decision p ocesses.
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 The holding ‘only’ manages; he e o e, he membe companies may eel, hey need
o inance i , and hey may lack he con inuous company managemen p ac ice om
he side o he holding managemen .
 The unning companies may inance he weake ones.
 The ope a ional amewo ks o he holding a e missing, ha is legal changes a e
necessa y o he implemen a ion o he al e na i e (e.g. company o ma ion, o
legal sepa a ion).
 G ea inancial and asse powe conglome a e may be o med.
The assessmen o he al e na i es
The ollowings may be de e mined on he basis o he abo e-p esen ed a gumen s
and coun e -a gumen s.
 The p e iously exp essed owne ship a ge s may be sa is ied wi h he ope a ion as
a uni o m company o he leas . The expec a ion o he 100% owne ship limi s he
sphe e o he companies ha may be me ged and i o e -limi s he usual lexibili y o
he economic o ganisa ion uni s o he e ogeneous business ac i i y.
 The ope a ion o he managing company as a conse n is able o implemen he
aims o he owne s and he legal independence o he companies p o ides he
necessa y lexibili y o hei ope a ion. Howe e , i may be sugges ed only as a
empo a y solu ion due o he limi a ion o he anspa ency o he ope a ion, he
expec ed ole con lic s o he managemen and hei o e load. In addi ion, he
company selec ed o pe o m he managemen needs o lea n and es ablish many
mo e p o essional asks and unc ions compa ed o hei p esen managemen
ac i i ies.
 The holding ype p omising he mos ad an ages in mos espec ensu es he
necessa y lexibili y and anspa ency o he owne s in he long un. The holding
may media e he in e es o he owne s wi hou any dis o ion and wi hou any
p ejudices, and i is he au hen ic suppo e and coo dina o o he p o essional
ambi ions and s a egic ini ia ions o he membe companies.
Summa y
We may see mo e and mo e examples o he o ma ion o uni o m co po a e
managemen sys ems wi hin he Hunga ian and in e na ional p ac ices wi h ega d o he
managemen o he local go e nmen owned public u ili y business o ganisa ions.
Al oge he , he Hunga ian examples p o ide a good example. The ope a ion o he
company g oups has become mo e anspa en and e icien . I is o g ea impo ance ha
hei managemen is based on p o essional g ounds ins ead o poli ical ones. We may
encoun e a cul u al change wi hin he managemen o he local go e nmen owned
companies by he sp eading o he uni o m managemen models. The expe iences in
Hunga y so a show ha he holding ype managemen s uc u es a e he ones p o iding
eal b eak h ough in he success ul ope a ion o he en ep eneu ial asse s o he local
go e nmen s.
Re e ences:
1. Deb eceni Vagyonkezelő Z . Con olling kéziköny , (2000)
2. Dobák-Ta i (1997) Konsze nsze eze k Magya o szágon, Veze és udomány 1-2-3. szám
3. Dobák és munka á sai(1996): Sze eze i o mák és eze és, Budapes , KJK.
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