Governance and Steering of MOCs in Finland – Legal Perspective

Legal Perspective

  • Janne Ruohonen University of Eastern Finland, Business School
  • Lassi Salminen Tampere University, Faculty of Management and Business (MAB)
  • Veikko Vahtera Tampere University, Faculty of Management and Business (MAB)
Keywords: MOC, municipally owned corporation, limited liability company, ownership policy, corporate governance


Local governments often use corporations for public service output. In Finland, limited liability companies can be used as a means to produce functions that a municipality is required to engage in by law or those functions that are optional for a municipality. This paper explains the current state, regulative background and reasons for corporatisation in Finnish municipalities. We then present a legal analysis of the legal strategies provided in the legislation that a municipality can use to govern and steer its external corporate bodies. Understanding the legal boundaries and possibilities is imperative for extending local self-governance to MOCs, and to align their goals with those of the municipality.


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