Publication date: 30.05.2024
Legal Aspects of Corporate Governance in Modern Business: Overview of Ukrainian Legislation
Introduction
Corporate governance is a key element of the successful operation and sustainable development of any company. In Ukraine, as in many other countries, the legal aspects of corporate governance are regulated by a number of legislative acts aimed at ensuring transparency, accountability and effective control over the activities of companies.
Key Legislative Acts
The Law of Ukraine "On Joint Stock Companies"
This law is the main regulatory act governing joint stock companies in Ukraine. Important provisions include:
- Article 2: Defining the basic principles of corporate governance, such as fairness, transparency and accountability.
- Article 33: Duties of management bodies of a joint stock company, including general meeting of shareholders, supervisory board and executive body.
- Article 44: Shareholders' rights, including the right to receive information about the company's activities and to participate in making important decisions. You may be interested in the following articles: legal advice, legal advice, analysis of documents, legal analysis of the situation, written advice, verification of documents by a lawyer, lawyers documents, online legal assistance, online lawyer, legal opinion, legal opinion of a lawyer, lawyer online.
The Law of Ukraine "On Business Associations"
This law regulates the activities of various types of business entities, including limited liability companies (LLCs) and full partnerships. The main provisions include:
- Article 10: Determination of the rights and obligations of the company's shareholders.
- Article 19: Procedure for the establishment and operation of the company's management bodies.
- Article 59: Procedure for distribution of profits and coverage of losses of the company.
Law of Ukraine "On State Registration of Legal Entities, Individual Entrepreneurs and Public Organizations"
This law establishes the procedure for registration and liquidation of legal entities, and regulates issues related to amendments to constituent documents. Important provisions include:
- Article 4: Procedure for state registration of legal entities, including joint stock companies and LLCs.
- Article 15: Requirements to the content of constituent documents.
- Article 21: Procedure for Amending Information on a Legal Entity.
Principles of Corporate Governance
Transparency
Transparency is a key principle of corporate governance that ensures openness and accessibility of information about the company's activities to all stakeholders. In accordance with the law, companies are required to disclose information about their financial activities, ownership structure, corporate events and other important aspects.
Accountability
Accountability implies the responsibility of the company's management bodies to shareholders and other stakeholders. This includes regular reporting on financial results, implementation of strategic plans, and compliance with legal requirements.
Justice
Fairness means treating all shareholders and stakeholders equally, regardless of their stake in the company. This includes the right of all shareholders to participate in general meetings, vote on important issues and receive dividends.
