IMPROVEMENT OF CORPORATE GOVERNANCE AS A WAY OF PREVENTING CORPORATE CONFLICTS WITHIN JOINT STOCK COMPANIES

Problem setting. Ukrainian legislation establishes the right of each stockholder ? the owner of ordinary shares to participate in the governance of a company. The relevant right can be realized in various ways (individually or through a representative) by implementing the powers that compose it. However, corporate governance is not only limited with exercising of the rights by stockholders ? the owners of ordinary shares. It includes the realization of the “right to vote” by stockholders ? the owners of preferred shares, the exercise of powers by the company’s bodies. Interaction between stockholders and with a company’s bodies sometimes causes a disturbance (threat of violation) of their rights and interests in the context of business activity of a joint stock company that is negatively reflected not only on the property component of each stockholder and a company in the whole, but also on a non-property element. The consequence of the stated above is the need to clarify the issues related to the detection of gaps in the current state of the legislation and legal practice in the context of improving corporate governance as a way to prevent corporate conflicts within joint stock companies. Analysis of recent researches and publications. Problematic issues of corporate governance within business legal entities were the subject of studies of the following lawyers: A.B. Agieiev, V.I. Borysova, D.I. Diedov, O.R. Kibenko, I.V. Spasibo-Fatieieva and others. However, modern scientific studies concerning the outlined issue have not paid any attention to the need for improving corporate governance aiming at prevention of corporate conflicts origin. Target of research. The objective of the article submitted for discussion is to outline the ways of improving corporate governance as a way to prevent corporate conflicts within joint stock companies. Article’s main body. Based on the conducted analysis of the current state of normative regulation of the relations in corporate governance and specifics of its implementation within law-enforcement activity we offer the define the following main ways of corporate governance development in preventing corporate conflicts within joint stock companies: 1) bound development and use of the principles of corporate governance in each joint stock company while law-enforcement activity; 2) guarantees of the independence of the supervisory board members while their decision-making; 3) guarantees of the independence of the executive board (including individual one) during the performance of their duties; 4) transparent dividend policy; 5) transparent procedure of approving, obtaining of consent, coordination of concluding major transactions and transactions, where there is the interest while their conclusion that are complicated by conflicts of interests; 6) the acquisition of company’s shares by the members of the executive body; 7) in solving specific issues restriction of the number of votes that may be held by one stockholder, regardless of the number of his/her shares. Conclusions and prospects for the development. Corporate conflict can be prevented by modifying corporate governance. Thus, in the case of forming the system of corporate governance in a joint stock company that would take into account the interests and subjective corporate rights of all groups of interested persons. The proper system would protect not only the rights and interests of these persons, but would also a way to prevent corporate conflicts.