Governance and Steering of MOCs – 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)



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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