INNOVATIVE INSTRUMENTS OF LEGAL MANAGEMENT

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INNOVATIVE INSTRUMENTS OF LEGAL MANAGEMENT

Journal Title: Право та інновації - Year 2018, Vol 1, Issue 21

Abstract

Problem setting. Business development takes place in a dynamic legal environment. Each manager's decision should be based on knowledge of legislation and law. Therefore, it is necessary to raise the question of the legal nature of management. Analysis of recent researches and publications. Foreign scientists A. Masson and H. Bouthinon-Dumas [1], C. E. Bagley and D. W. Savage [2; 3], R. C. Bird, P. Borochin and J. Knopf [4; 5] analyze the legal aspects of modern management. In Ukraine, scientists-economists of the Yaroslav Mudryi National Law University work on these problems [7; 8; 9; 10]. The target of research is to disclose the sense of the legal management conception and to reveal opportunities of its practical implementation in Ukraine. Article’s main body. I distinguish between the concepts of law practice management and legal management. Law practice management means the management of law firms. Legal management is a broader concept. It is a system of managerial relations and actions, which are based on awareness of managers and their adherence to law norms and regulated by the current legislation and job descriptions (at an organization) with strict defining and optimal division of juridical rights and obligations of managers. That is to say, it is the legally standardized managerial activity in any field of economic operations. To characterize the subject of legal management, foreign scientists use the notion of “legally astute manager” who understands the legal aspects of business and can use the knowledge of legislation to increase the value of business and protect the interests of shareholders. Application of instruments of legal streamlining the economic activity is a component of management of organizations that qualitatively changes its content. Many firms tend to develop special legal strategies. Legal procedures and instruments are used for managing a firm. Due diligence is the establishment by independent experts of the reliability of financial, tax and statistical reporting, the correctness of the execution of all company documents, their compliance with the law and internal requirements, assessment of business risks. Compliance is the creating recommendations for managing hazards that arise from failure to observe or even misunderstanding the principles of good faith behavior on the market, requirements of legislation, rules and standards of supervisors, industry associations and selfgoverning organizations, codes of corporate conduct (ethics), data privacy policies, etc. Forensic is the activity on identifying key economic risks, analyzing and resolving financial and legal disputes and other conflict situations that arise between business partners. Contradictions may be caused by different views on doing business, risky actions, or suspicion of committing crimes by individual employees or even organizations; Investor relations are the legal support for interaction with investors, prevention of unfriendly enrichment of participants in an investment project. Priority is the establishment of effective communications with those investors and other interest groups that can positively affect the market value of the firm. Government relations are the interaction with state authorities in order to succeed the company and implement entrepreneurial projects, especially investment. All these activities can be transferred under a contract of outsourcing to law firms. It has a professional and economic sense. However, in many cases, managers of business organizations are trying to use legal management tools themselves. Conclusions and prospects for the development. As foreign practice shows, business organizations either need managers with juridical knowledge or lawyers (legal advisers) with managerial knowledge, or business consultants who understand both the law and the management at the same time. It is necessary to improve the curricula of training specialists and professionals in the specialty “Management” by deepening the teaching of legal academic disciplines and obtaining system legal knowledge by future managers.

Authors and Affiliations

L. S. Shevchenko

Keywords

law practice management legal management legal strategy due diligence compliance forensic investor relations government relations.

EP ID EP484599
DOI -
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