Transformations in the ownership of state owned companies in Poland a! er 1989 played a pivotal role in the general political transformation which took place in Poland at that time. Those ownership changes were an essential element of the political transformation of Poland. The process of transforming the country’s economy from central economic planning to free market economy was started by Tadeusz Mazowiecki’s government. On October 9, 1989, the Council of Ministers accepted a document Guidelines and Directions of Poland’s Economic Policy which aimed at stabilizing the country’s economy and at transforming its economic system. " e stabilization programme was supposed to be implemented by January, 1990.3 " e second stage of the governmental plan was planned for the years 1990–1991 and one of its main tenets was a transformation of ownership rights. Krzysztof Lis, the government’s plenipotentiary for ownership transformation, was responsible for the organization and legislation of the process of privatizing Polish economy. T. Mazowiecki’s cabinet prepared both a draft for the new amendment of the legal act concerning state owned companies and a dra! of a new act about privatizing state owned companies.