The transformation of a public monopoly into a public limited company through the privatisation process : a critical legal study of the British and world-wide experience: the case study of privatising the telecommunications industry
At the outset, the thesis highlights the tendency among some lawyers and public policy practitioners alike to rule out any contribution that legal theory is capable of providing to both public policymakers and policymaking. It vigorously rejects the norm that is expressed that the law has to be a subordinate factor when laying out an economic reform policy. Instead, the predominant theme suggested by this thesis is that both the law and economics have to operate in harmony while preparing a privatisation policy. Hence, the better the understanding of each one's role and effect on the other, the greater become the chances of arriving at a prudent and workable policy. Consequently, the overall research message can be simply summarised; Unless the divestiture of the state ownership in public monopolies is accompanied with a carefully designed set of regulations to regulate the marketplace, one cannot proclaim that a worldwide privatisation programme is in operation. In other words, the determining factor for the success or failure of any privatisation programme rests with the ability of the so-called Regulatory Reform policy to enhance efficiency and boost desirable competition within the market. Considering this, it is the researchers belief that the public limited liability company represents the ideal substitute for the publicly owned monopoly. For the purposes of this thesis, public limited companies are seen as governing institutions where the choice of a democratic and accountable management is conspicuously exercised. This legal tool provides an opportunity for the optimum deployments of personnel and other resources whereby a separate board of professional directors is maintained aided by crews of internal and external experts on nearly all of the company's related-operation aspects. On the whole, this legal device can be capable of responding to all reform policies' objectives whether in terms of efficiency, or distribution of wealth broadening public participation in public affairs. Finally, this thesis engages in the debate as to the extent to which privatisation can be imperative for certain economic activities. The economic conditions believed to have existed within the telecommunications industry that make the positive intervention by the state in such an operation a necessity have been examined. The outcome of the examination upheld the agreement that form the perspective of society as a whole, the telecommunications sector is best run by means of a combination of private capital and state regulation.