Challenging issues in resolving corporate conflict within the framework of a corporate agreement

Abstract

The scientific article will discuss possible mechanisms for parties to regulate their mutual relations through a corporate agreement. In the modern world, the regulation of relations between business partners is a very important aspect that affects the business climate in a country as a whole. If partners can regulate their mutual relations in the company in a way that is understandable to them, it affects where exactly such a company will be created, who will work in it, and where it will pay taxes. There are different approaches to this issue in the world, but it is possible to distinguish two main ones, namely the approaches used in the Anglo-American legal system and the continental legal system. The scientific article will pay special attention to resolving corporate conflict between business partners who have equal shares (50/50). It should be noted that it is very important for each country to develop an appropriate mechanism for resolving corporate disputes that arise between the parties of a corporate (shareholder) agreement, which will meet the requirements of the business environment and will be clearly regulated by current legislation and approved in court. In the scientific article, the nature of the corporate agreement will be disclosed, practical recommendations on preparing a corporate agreement will be provided, and problematic issues that parties to a corporate agreement encounter when resolving disputed issues and corporate conflicts, especially when a deadlock situation arises, will be highlighted. An analysis of the mechanisms used in corporate agreements to resolve disputes between business partners will be provided. Also, the strengths and weaknesses of each of them will be disclosed, including the experience of countries with Anglo-American law and how such experience can be applied in Ukraine. Special attention was given to mechanisms when the right or obligation to buy or sell a share in the company’s capital arises. Additionally, based on the analysis, effective mechanisms for resolving corporate disputes between the parties of a corporate agreement will be proposed in the scientific article, as well as relevant suggestions for improving the legislation of Ukraine and judicial practice on this issue.