CORPORATE GOVERNANCE IN BUSINESS COMPANIES: CURRENT STATUS AND WAYS TO IMPROVE

Abstract

The article is devoted to a detailed analysis of the peculiarities of corporate governance in Ukrainian business entities in accordance with modern realities, with an emphasis on identifying problems and determining ways to improve, paying attention to international standards and national characteristics. This study emphasizes the effectiveness of corporate governance as a fundamental condition for the successful functioning of any modern company, ensuring its sustainable development, increasing its investment attractiveness, and protecting the interests of all parties involved. Despite positive developments in the formation of a legislative platform for corporate governance, numerous problems remain in Ukraine, such as an imperfect legal system, limited protection of investor rights, and insufficiently transparent regulation of corporate relations. The authors of the article highlight modern approaches to defining corporate governance, interpreting it either as the activities of all entities involved in the process of managing a company or as exclusively the activities of legal entities and representative structures. In the context of regulatory and legal regulation of corporate governance, the provisions of the Civil and Commercial Codes of Ukraine, the laws “On Joint Stock Companies,” “On Limited and Additional Liability Companies,” “On Securities and the Stock Market,” “On Protection of Economic Competition,” as well as amendments to the Corporate Governance Code aimed at ensuring the effectiveness of this industry. Much attention is paid to reviewing the overall state of corporate governance in Ukraine, which shows a gradual convergence with international standards. The document notes that the main tasks remain the transparency of the management process, the improvement of the mechanism for protecting the rights of all participants in corporate relations, the active development of corporate culture, and the strengthening of the effectiveness of corporate social responsibility in sustainable development. Lack of transparency, shortcomings in the work of supervisory boards, low level of corporate culture, insufficient attention to social responsibility, and limited access to relevant information. In the context of the study, recommendations were made to improve corporate governance. In particular, improving the regulatory framework and its effective implementation in practice, enhancing the role of supervisory board members, strengthening standards for transparency and accessibility of information regarding the economic aspects of business entities, deepening the protection of investor and shareholder rights, and developing the principles of corporate culture. The importance of cooperation with international organizations in order to obtain advice from leading experts and technical support was emphasized. Thus, the article confirms the key role of sound corporate governance in ensuring the stability of activities, competitiveness, and investment attractiveness of business entities. Taking steps to improve it requires a comprehensive approach that makes the most of leading global experience and adapts it to the Ukrainian situation.