Characteristics of the legal status of the balance holder of municipal property

The article provides a comprehensive analysis of the legal status of the balance holder in the field of municipal property management in Ukraine, with a particular focus on its role and functional significance within legal relations arising in the contexts of concession, public-private partnership, privatization, and leasing of municipal property. It is substantiated that the legislative regulation of the balance holder’s status is fragmented and ambiguous, leading to legal uncertainty and creating significant difficulties for law enforcement practice. It has been revealed that the current regulatory framework lacks a unified definition of the term «balance holder,» which results in legal uncertainty and enables situations where the balance holder, contrary to the fundamental principles of local self-government, effectively assumes discretionary powers similar to those of a property owner. These inconsistencies in the definition and legal status of the balance holder may have both economic and managerial consequences, as they lead to weakened control over the management of municipal assets, potential losses in budget revenues, and increased risks of inefficient use of municipal property by territorial communities. Based on a systematic analysis of the current legislation, the necessity of forming a unified approach to defining the legal status of the balance holder, its competencies, and the scope of its responsibilities has been substantiated. It is proposed to refine the legal nature of this institution by replacing the term «balance holder» with «manager», which would more accurately reflect its functional essence – not only as an entity responsible for the accounting of municipal property but also as an entity engaged in its management, maintenance, and operation. The unification of approaches to the regulation of the balance holder’s status, the establishment of clear boundaries for its rights and obligations, and the introduction of an effective regulatory oversight mechanism for its activities will contribute to enhancing transparency in municipal property management, eliminating existing corruption risks, and ensuring the efficient use of territorial community resources in their best interest.