General theoretical foundations of the state’s participation in corporate relations

Abstract

New approaches to the economy in Ukraine requires not only reforming the private sector, but also to determine the optimal model of state involvement in economic relations. Government policy within the new policy of state property management involves the implementation of corporate governance standards according to the OECD, the appointment of recognized experts in leadership positions in key state-owned companies, namely: 1) implementation of effective management of state property; 2) attracting international auditing companies to audit the key state-owned companies; 3) removal of public officials on the management of public companies. The aim is to establish assumptions of state participation as a complex legal and political organization of society in corporate relationships that provide for a combination of economic and legal foundations of the rights of the public corporation's legal interests. The initial phase of the proposed study is to establish the functions of the state, allowing it to establish feasibility of participation in corporate affairs. Thus, Article 17 of the Constitution of Ukraine stipulates that the most important functions of the state, a matter of the Ukrainian people is to protect the sovereignty and territorial integrity of Ukraine, to ensure its economic and informational security. Further analysis of the Constitution of Ukraine does not provide the possibility to establish the form and means of achieving economic security. Thus, there is the question of whether state involvement in economic entities as a strategic goal. On the other hand, such participation will contribute to getting the state profits (dividends) will ensure the preservation of key economic facilities, guarantee investments, etc. Today it is difficult to assess the impact of the implementation of state corporate rights and socio-economic effects of corporatization not only individual state enterprises and even entire industries. The model state corporate rights management can be performed either by direct control of the state through the competent authorities or by transferring the management rights of a legal entity on a competitive basis. The first model is not without drawbacks, in particular the complexity of decision-making, combining in one body corporate rights of legal entities in different sectors like. General principles of state involvement in corporate relations based on the recognition of a member state of economic society, the most appropriate type of which is a public company. Development and improvement of internal means of regulation of corporate relations in joint stock companies should serve as a model for the activities of other corporations, because some legal requirements are not met it is in the public sector. Because of the nature of the state as a complex political-legal phenomenon should introduce control mechanisms companies’ public institutions. Finally, the legislative regulation of corporate relations and public practice of corporate regulations should create a favourable investment climate in Ukraine.