COMPANY EQUITY OWNERSHIP AND SHARE CAPITAL: A LEGAL AND ECONOMIC ANALYSIS

Аннотация

This article analyzes the public-private partnership (PPP) model as a modern tool of state governance. It presents scientific approaches and scholars’ opinions regarding the importance of PPPs in fulfilling state functions, particularly in infrastructure, social services, andeconomic development, as well as theirefficiency and associated risks. Keywords: state functions, public-private partnership, social partnership, infrastructure, efficiency, institutional approach. I.Introduction In modern public administration, due to resource shortages, budget constraints, and the growing needs of the population, the state is compelled to implement new mechanisms in fulfilling its functions. One such mechanism is public-private partnership (PPP), which represents mutually beneficial and long-term cooperation between thepublicandprivate sectors. II.Concept andEssenceof PPP Key features ofPPPs include:  Pooling ofresources: thestate andbusinesses combine theirefforts.  Risksharing: financial andtechnical risks are divided between partners.  Result-oriented: priority is given to socialand economic efficiency. Prof. Paul Hodge (Oxford University): “Public-private partnerships are not just a financial tool — they are a new mode of governance aimed at outsourcing state functions without giving upcontrol.”[1] III.State FunctionsImplemented throughPPP A. Infrastructure Development (roads, bridges, airports)  PPPmodels are primarily applied inthe field ofinfrastructure.  For example, in Uzbekistan, the “Reconstruction of Tashkent International Airport” project is being implemented under aPPPmodel. Dr. A. Murodov (Uzbekistan, Economist): “Carrying out classical state functions through private partners allows the state to reduce expenses and simultaneously improve service quality.” [2] B. Healthcare and Education  Models involving private partners in the establishment of clinics, schools, and vocational centers are being introduced.  In theUK,PPP-based clinics existwithin theNHS (National Health Service). C.PublicUtilities  Services such as water supply, electricity, and waste processing are implemented in partnership with theprivate sector. page1256 INTERNATIONAL JOURNAL OF ARTIFICIAL INTELLIGENCE ISSN:2692-5206,ImpactFactor:12,23 AmericanAcademicpublishers,volume05,issue05,2025 Journal: https://www.academicpublishers.org/journals/index.php/ijai IV. ScientificApproaches andDebated Aspects Approach Supporters Key Arguments Neoliberal F. Hayek, M. Maximizing privatization of state functions Approach Friedman increases social efficiency. Institutional D. North, E. PPPs won’t work effectively without institutional Approach Ostrom coherence andlegalguarantees. Through PPPs, the state avoids accountability, Critical Approach J.Stiglitz potentiallyincreasing inequality. Joseph Stiglitz (Nobel Laureate): “Not all PPPs are beneficial. Without proper regulation, they can lead to privatizationofprofits andsocializationof losses.” [3] V. RisksandIssues in PPPs  Lackof transparency: tenders andcontracts are often carried outbehind closed doors.  Unequal risk distribution: in some cases, the state assumes the majority of risks while profits go toprivate partners.  Political influence: political orclan interests may override publicinterests. Prof. M. Nishonov (Legal Scholar): “PPP contracts must be clearly standardized through legislation, and mechanisms ofaccountability mustbestrengthened.” [4] VI. Uzbekistan’s Experience The Law of the Republic of Uzbekistan “On Public-Private Partnership” [5] was adopted in 2019.In recent years, active projects have been implemented in thefollowing sectors:  Education:subsidiesare allocated tonon-state schools.  Healthcare: private clinicsare commissioned to provideservices onbehalf of thestate.  Energy:solarand wind power plant projects are implemented under PPPmodels. VII. ConclusionandRecommendations  PPP has become an important tool in fulfilling state functions. However, if not properly institutionalized, itmay lead to consequences contrary to publicinterests.  Therefore, in PPPprojects: risksand benefits should be clearly distributed; o strong legal foundations are essential; o mechanisms for publicoversight and transparency mustbe inplace. o Recommendation: An independent evaluation institution for PPP projects should be established in Uzbekistan, and legal provisions should mandate public disclosure of PPP contracts.