Corporations in Ukrainian Law
Authors:   Valentyna Vasylieva, Alla Zelisko
Published: June 2021

This article deals with the special development of the company (or rather corporate) law in Ukrainian legal system. The current legislation does not set the concept of corporation. As a result, the consept «corporation» is the center of the scientific discussions. Judicial practice forms different conceptions of the concept «corporation» also.

At the same time, the concept «corporation» is the general element of the company law development in the future.

The legal concept of the corporate relationships forms one their general sign only. The object of these relationships is the corporate rights.

The form of the legal entity predetermines the maintenance of the corporate rights. Thus, the list of subjects is the criterion for the corporate nature of the relationships.

The maintenance of the concept «corporation» is different in the world legal systems. Thus, the implementation of this concept into our legal system is the difficult process. Being in past the post social state, Ukraine did not have the company (or corporate) law. The modern Ukrainian legislation has a high level of dynamics. It adapts to the necessities of modern society.

All mentioned above circumstances need special criteria. Such criteria should form the maintenance of the concept «corporation». They are the most difficult problem. The main reasons of this situation are: the existence of two codes – Civil Code and Commercial Code; the existence of a lot of special legal acts. As a result, there are a lot of ways for understanding of the concept «corporation» in Ukrainian science: from some forms of the companies to all legal entities.

The corporate relationships have got one general sign – the special legal connection between legal entity and it’s membership. Such connection is the nature of the corporation. The scientists formed a lot of signs of the corporation. For example, general social aim, association of persons and capitals, existence of property and non property rights for participants.

The most of these signs are in all legal entities. At the same time, mentioned above list includes one special sign — the existence not only non property rights, but property rights too. The participants of the non-entrepreneurial legal entities have not property rights. It is not exists the property connection between the non-entrepreneurial legal entity and participants.

What does the nature of the entrepreneurial legal entity? The aim to get the income it is not sufficient sign for entrepreneurial legal entity. According to provisions of the Civil Code, non-entrepreneurial legal entity may also to get income.

All legal entities may get some income from activity in modern economic relationships. The nature of the entrepreneurial legal entities — distribution of income between the participants. As a result, participants of such legal entities have got full list of the corporate rights (including property and non-property rights). Thus, the corporate legal nature is the main feature for the entrepreneurial legal entity.

Key words: corporation, legal entity, incom, corporate rights, entrepreneurial legal entity.