THE FORMATION OF AN EFFECTIVE CORPORATE GOVERNANCE MODEL IN THE INNOVATIVE SOCIETY

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THE FORMATION OF AN EFFECTIVE CORPORATE GOVERNANCE MODEL IN THE INNOVATIVE SOCIETY

Journal Title: Право та інновації - Year 2018, Vol 4, Issue 24

Abstract

Problem setting. In Ukraine the subjects of innovation activity can exist as independent companies or as groups of companies acting on the basis of the agreement on joint activity, as well as individuals-entrepreneurs. Such companies are purposefully created for the purpose of accumulation of capital and its direction in order to achieve the statutory purposes. Because of that the activity of companies in the field of innovation activity has research interest. The most widespread organizational and legal form among companies in the field of innovation activity, as well as in general, are limited liability companies. The relevance of the question of composition a special system of corporate governance in small and medium-sized enterprises that carry out innovation activities is conditioned, firstly, by the need for Ukrainian investors to be involved in innovative investment activities and the organization of efficient capital management, and, secondly, in raising the attractiveness of Ukrainian innovation projects for investment , thirdly, the requirements of the current legislation, which is currently undergoing significant changes. Purpose of research. The purpose of this article is studying the models of corporate governance of companies that carry out innovation activity in Ukraine, establishing the main regularities and necessary criteria for selecting companies in the field of innovations of the optimal structure of corporate governance. Analysis of recent researches and publications. The legal problems of governance in corporations and companies have been the subject of research in the writings of many scientists, are: Yu. M. Zhornokyi, D. V. Zadykhaylo, O. R Kibenko, V. M. Kravchuk, I. V. Lukach, V. V. Luts, O. P. Podtserkovnii, I. V. Spasibo-Fateyeva, V. S.Shcherbina. Article’s main body. By analyzing the concept of "corporate governance model", it is necessary to distinguish the principles that underlie this definition, since they may have legal, purely economic, or mixed character. The model of corporate governance is a universal inter-industry category, which organically combines the principles of legal regulation of companies and the laws of their financial and economic activity. The model for creating a corporate governance system allows for the rapid formation of the structure of corporate elements and information links between them for efficient interaction of companies at all levels of corporate governance Under the model of corporate governance should understand the system of relations that arise in the midst of the company in relation to the mechanisms of influence on the activities of the company, the functioning of the company's management bodies in the development, approval and implementation of management decisions in order to achieve the statutory goals of the partnership. Analysis of legal literature shows that in general, four main types of corporate governance models are distinguished: 1. Two-level (German) model for the construction of management bodies of the company, which provides for the presence, in addition to the general meeting of participants, executive and supervisory authorities; 2. A one-level (British) model, according to which the functioning of a unitary governing body - the board of directors - is in the company; 3. Emphasize an alternative model that gives companies the opportunity to form a supervisory body in them; 4. A mixed model that essentially fixes the unitary model, but involves the mandatory formation of a supervisory body under certain conditions. Various options for the competence of the management bodies of the company, in particular the supervisory board, provided for by law, provide the opportunity to build different models of corporate governance. Given the possibility of creating several models of company management, the Ukrainian system of bodies can not be attributed to a purely mixed system. However, it is closest to the European (mixed) model, since EU legislation allows the use of both German and BritishAmerican models. Considering the tendencies of corporate governance development in Ukrainian companies, in particular in the companies of innovation activity, it is necessary to understand that the effectiveness of any model of corporate governance as a form is relative and depends on the qualitative properties of the economic, legal and social environment as a whole. It seems that the choice of the corporate governance model in limited liability companies should depend primarily on internal criteria: the compliance of the corporate governance structure with the goals and objectives of the partnership; definition of the mechanism of interaction of elements of corporate governance; formulation of the expected results of corporate governance. In addition, one should take into account the general socio-economic indicators of the state, in particular: the state of the economy; the degree of observance of the rule of law in the state; independence of judicial and law enforcement agencies; investment attractiveness of the sphere of economic activity (state), etc.

Authors and Affiliations

O. V. Cherkasov

Keywords

EP ID EP492697
DOI -
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