This article provides a detailed analysis of the establishment and protection of shareholders’ rights in Ukraine, which is an important component of corporate governance and the country’s development. The protection of shareholders’ rights ensures the stability of financial markets and contributes to attracting investments. The legal status of shareholders, their rights, and obligations play a crucial role in the functioning of joint-stock companies. The primary way to acquire shareholder status is by purchasing shares on the stock market, as well as through the transfer of shares via inheritance or gifting. The Law of Ukraine «On Joint-Stock Companies» regulates these processes, establishing shareholders’ rights to participate in general meetings, receive dividends, and access information about the company’s activities. One of the important functions of the law is to provide shareholders with the opportunity to protect their rights in the event of violations. The mechanisms for protecting shareholders’ rights include legal recourse and filing complaints with the National Commission on Securities and Stock Market (hereinafter – NCSSM). This government body oversees the activities of joint-stock companies, ensuring compliance with legal requirements regarding the issuance and circulation of securities. The NCSSM also has the authority to impose sanctions on companies that violate shareholders’ rights. Transparency and openness in the activities of joint-stock companies are crucial aspects of shareholder protection. Companies are required to provide information about their financial activities and management decisions, but in practice, this is not always done properly. In such cases, the NCSSM may impose fines and demand that violations be corrected. In Ukraine, shareholder relations and corporate governance are undergoing significant transformations under the influence of globalization, continuous legislative updates, and the growth of the stock market. These changes create new opportunities for business development but also present new challenges for shareholders and companies. The protection of shareholders’ rights is one of the cornerstones of ensuring economic stability and forming an attractive investment environment. An effective system of corporate governance that guarantees fair protection of shareholders’ interests is a necessary condition for increasing trust in the Ukrainian market and attracting international investors. International practice plays an important role in the implementation of corporate governance standards in Ukraine. The principles developed by international organizations are aimed at ensuring fair treatment of shareholders, increasing transparency, and enhancing the accountability of management bodies. This contributes to the protection of shareholders’ rights, improves the investment climate, and fosters the development of corporate culture in Ukraine.
Read full abstract