LEGAL ASPECTS OF THE CORPORATE GOVERNANCE
Creators: name: Kostruba, Anatoliy
Publisher: name: figshare
Year: 2020
Subjects: subject: 180121 Legal Practice, Lawyering and the Legal Profession
subject: FOS: Law
subject: Law
subject: 180104 Civil Law and Procedure
subject: 180109 Corporations and Associations Law

description: The «corporate governance» term has different variations. One of such notions of the corporate governance as a system under which business corporations are managed and controlled. This term describes procedures, customs, policies, laws and institutions that govern the corporation.We are convinces that the corporate governance is a form of organization of activity of a corporation through the orderly influence<br>of the subjects of such governance, its interactions at microeconomic processes, which ensure its optimal socio-economic existence in the macroeconomic environment.The concept of the term «corporate governance» indicates the necessity to define it by categories not only of legal science.The legal aspect of an issue of corporate governance is caused by two factors:1. Ensuring the judicial personality of the corporation, which provides the implementation of its proper management;2. The prudence of corporate conflict among corporate affiliates.The corporate governance exercising is achieved by the activity of the <em>corporation management entities</em>, which ensure a correspondent organizational influence. Despite the polyvariety of entities, who are involved in the activity of the corporation and somehow influence on its management, <em>the corporation management entity is one who has direct influence on management governance decision-making and its realization</em>. Therefore, the category of corporate governance personality is revealed through a feature of connectivity in decision-making of the corporation’s activity. <em>Such an entity is a responsible authority of corporate governance.</em> Due to a vivid activity of these entities, the functioning of the legal entity is ensured, as a participant of civil relations, its legal personality.We may see from the above that the formula of corporate governance consists in the fact that the entity of the corporate<br>governance is a person who ensures its legal personality.Due to the differentiated nature of the corporate governance, the multidimensional nature of the corporation’s realization directions of the legal personality, its governance is concentrated within the polyvariative limits. Because of the disbalance of the law enforcement and the level of general competence, the concentration of management leverages of governance within the limits of one subject inevitably influences the efficiency of taking and realization of management decisions.Thus the subject’s activity of the corporate governance has a variable nature and competence component, which is the differentiation of the subjects of governance in relation to the area of its competence. This way the relevant bodies realize the legal personality of the corporation. Their systematization requires the construction of the coordination model between them. The first (basic) level of the construction is the governing body, which is formed by a participant (founder) of the corporation and is a legal means of self-organization of collective interest. The second level is the creation and functioning of the authority of implementation of the decisions of the corporate governance, taken by the superior body. A combinatorial set of elements of second level of the corporate governance, definition of the configuration of its relations according to the superior corporate governance body, creates a relevant model of the corporate governance. This model is an explication of the practical form of the corporate governance.The formula of efficiency of the corporate governance is precisely in the unity of the diversity of interests of persons. The clear identification of interest of a separate group of persons and its representation in the process of governance of the corporation is a form of prevention of abusive use of the construction of a legal entity in the interests of another group of persons who have relation to the management of a legal entity. A social compromise is achieved throughout the mentioned way and due to a mutual balance of interests. At the microsocial level its realization is ensured by the functioning of management bodies of the corporation, formation of the structure of such bodies, interaction of the subjects of the corporate governance between each other.