1. Introduction
Municipalities in Sweden organize some of their operations in corporations. These
municipal corporations are located in a twilight zone, being both private in one sense,
acting according to the legislation of joint stock companies, and public in another sense,
oriented towards fulfilling the needs of the municipal citizenry. Their twilight character is
indicated in their relationship to profit. Municipal corporations are subject to business risk,
which can imply profits in some years, but according to Swedish municipal legislation,
they are forbidden to organize with the object of making a profit. They are thus organized
according to a capitalistic principle, but are prohibited from fully using the driving force of
capitalistic organizations