European Principles of Corporate Governance in The Legislation of Ukraine

Abstract

The article explores the specifics of implementing European corporate governance standards in Ukrainian companies, which has contributed to the development of corporate culture and the establishment of a more effective domestic corporate governance system. It is noted that over the past decade, pro-European reforms have been actively implemented in both legislation and the enforcement of laws concerning corporate governance in Ukraine. Significant innovations have been introduced through the Laws of Ukraine “On Joint Stock Companies,” “On Limited and Additional Liability Companies,” “On Capital Markets and Organized Commodity Markets,” among others. Ukraine’s legislative framework has been substantially improved based on the OECD Principles of Corporate Governance, which have been further incorporated into the local rule-making of legal entities (including statutes, regulations on the activities of governing bodies, corporate governance codes, and codes of business ethics). Equally influential in the adoption of European corporate governance standards have been the European Union Directives, aimed at enhancing governance practices within companies. Legislative transparency in corporate governance, the development of internal corporate rule-making, and the formalization of fiduciary duties and liabilities of corporate officers have become realities, not only incorporated into Ukraine’s legal framework but also actively implemented in practice.