International Journal of Development in Social Sciences and Humanities

These companies may face obstacles that limit their activity and growth as a result of an emergency or lack of prior planning or the combination of public company ownership and management, so the state resorts to transforming and restructuring these companies to get rid of their negative effects. Through privatization or transformation and restructuring of public sector companies as commercial tools with legal dimensions, as an integrated set of procedures with a legal framework, the state aims through them to achieve economic reform and move towards market competition, by reducing state intervention and opening the field more widely to the private sector, through a set of modern methods. Some of them require transferring the ownership of public companies in whole or in part to the private sector or by retaining ownership of the funds to the state while delegating the basic tasks to the private sector, through several methods and means including lease, concession, management and licensing contracts, while the state retains the right to supervise and monitor these projects to follow up on the progress of the privatization process according to the economic plan set for them. So it is a legal process that results in the final expiration of the legal personality of the public company as in liquidation, as this procedure results in a set of effects that affect the company, employees and customers, as they will be subject to a legal system that differs from the legal system that governed them. When these companies are privatized and transformed, they will be subject to another legal system that differs from the system that governed them in all their internal and external relations. In Iraq, if a specific company is privatized, it goes beyond the scope of the Iraqi Public Companies Law and falls under the scope of Private Companies Law No. (21) of 1997. Whether this transformation or privatization is into private or mixed companies, it is governed by this law in the details that we will see. It has advantages and disadvantages as well. In fact, we find that despite the advantages and disadvantages that arise from these two methods, they are in fact one of the two main solutions for the public company to be freed from the obligations that lead to its end.