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The current legislation allows the territorial self-governing units to carry out its tasks, in particular to the economic exploitation of its assets and to ensure publicly beneficial activities (amongst others), to set up business companies, namely joint stock companies and limited liability companies. Under the Czech Law on Commercial Corporations, the role of the highest authority in a single-member company is exercised by its associate. According to the Act on Municipal (Regional) Establishment, the decision making in the matters of the municipality (region) as the sole partner of a business company is reserved to the council of the municipality (region). Under conditions of territorial self-governing units, this creates a specific situation where the council acts as the collective authority of the municipality (region) in the competence of the general meeting of the joint stock company, respecting both the rules resulting from the public law regulation and the private law stipulated in the norms of commercial law. The paper focuses on some theoretical and practical problems caused by the merging of commercial and administrative law in the exercise of the competence of the general meeting of the joint stock company by the council of the municipality (region).