The impact of privatization on current contracts
What happens to contracts when privatization takes place?
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Privatization is the transfer of ownership of a large part or all of a company's capital from the public to the private sector.After privatization, a company may remain under the partial or total control of the state, if the latter chooses to remain a shareholder.Of course, as this is a transfer of ownership, it has consequences for the contracts, memorandums of understanding and partnerships in place at the time. Hence the central question of what happens to existing contracts during the privatization period.More simplistically, what happens to employment contracts and those of service provid...
Privatization is the transfer of ownership of a large part or all of a company's capital from the public to the private sector.After privatization, a company may remain under the partial or total control of the state, if the latter chooses to remain a shareholder.Of course, as this is a transfer of ownership, it has consequences for the contracts, memorandums of understanding and partnerships in place at the time. Hence the central question of what happens to existing contracts during the privatization period.More simplistically, what happens to employment contracts and those of service providers and suppliers after the transfer of ownership from the State to a private legal entity?
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