Right of Operational Management

in the USSR, the right of organizations to possess, use, and dispose of the property allotted to them within the limits established by law and in conformity with the purposes of their activity, plan assignments, and the function of the property. The Soviet state and cooperative and public organizations exercise the rights of owners either independently (for example, the state through its agencies) or by transferring the property to the operational management of other organizations that enjoy the right in question.

The right of operational management is given to organizations that are legal persons: state cost-accounting enterprises or organizations (for example, plants, stores, and construction organizations), budget-financed institutions (schools and hospitals), and other state organizations. It is also granted to kolkhoz enterprises, cooperative organizations (for example, interkolkhoz construction organizations), enterprises belonging to public organizations (sanatoriums and clubs), and state-cooperative organizations. All these organizations have the right to possess, use, and dispose of the property allotted to them; in civil practice they operate on their own behalf and use this property to meet their obligations within the limits established by law.

Both property received by an organization at its founding and property acquired through economic operations may be the object of the right of operational management.