Publication date: 08.06.2024
Legal aspects of corporate governance in Ukrainian companies
Introduction
Corporate governance is a key component of the successful operation of businesses. It includes a set of rules, processes and practices that determine how a company is managed and controlled. In Ukraine, the legal regulation of corporate governance is based on several key legislative acts that establish the rights and obligations of shareholders, directors and other stakeholders. In this article, we will analyze the main legal aspects of corporate governance in Ukrainian companies, as well as the problems and prospects for its development.
Legal framework
The Civil Code of Ukraine:
- Defines the general principles of establishment and operation of legal entities, including joint stock companies and limited liability companies.
Commercial Code of Ukraine:
- Regulates the legal framework for business activities, including corporate governance issues.
The Law of Ukraine "On Joint Stock Companies":
- Contains special provisions on the establishment, operation and liquidation of joint stock companies, defines the rights and obligations of shareholders, management and control bodies.
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The Law of Ukraine "On Limited Liability Companies and Additional Liability Companies":
- Regulates the activities of limited liability companies, including management and distribution of powers between participants.
The main problems of corporate governance
Conflicts between shareholders and management:
- Situations often arise when the interests of shareholders and company management do not coincide, which can lead to conflicts and ineffective management.
Lack of transparency:
- Lack of transparency in companies' operations can lead to distrust on the part of investors and other stakeholders.
Problems with the observance of shareholders' rights:
- Insufficient observance of shareholders' rights, including minority shareholders, can lead to violations of their interests and reduce the investment attractiveness of companies.
Corruption and abuse of power:
- The high level of corruption and abuse of power by company management negatively affects the effectiveness of corporate governance.
Prospects for improving corporate governance
Implementation of international standards:
- The integration of international corporate governance standards into national legislation will help to increase transparency and efficiency of company management.
Increase transparency:
- Improving the mechanisms for disclosing information about companies' activities, including financial statements and performance, will increase the confidence of investors and other stakeholders.
Protection of shareholders' rights:
- Strengthening the protection of shareholders' rights, including minority shareholders, by improving legislation and providing mechanisms for their participation in company management.
Anti-corruption measures:
- Implementation of effective anti-corruption measures in corporate governance, including increased liability for corruption and abuse of power.
Development of corporate culture:
- Building a corporate culture based on the principles of ethics, responsibility, and transparency will help improve the efficiency of company management.
