Efficient Corporate Governance Is a Driving Force of Uncontroversial Development of Corporation as a Local Social and Economic System

Abstract

The chapter is aimed at comprehensive discovery of the basic legal tools to improve the quality of corporate governance from the standpoint of efficient revealing, preventing and shooting negative implications of internal corporate disputes. The subject of the study, in particular, is regulatory and non-regulatory enactments in this area. Within the study we employ basic approaches that allow to reveal the conditions ensuring efficient corporate governance, i.e., dialectical, historical, systemic, formal-logic, and comparative-law ones. Therewith, the main focus is on the application of system theory developments in terms of the methodological techniques to describe any system object.

Regarding the disputes between participants of the corporation, we substantiate the need of creating conditions for the highest account of opinions of all the participants in the development of collective will, as well as for restraint of major participants from potential abuses (through accumulative voting mechanism, implementing “two keys” principle, etc.). Special attention is paid to the issues of procedure and content of interest-collision transactions made by economic societies.

The authors point out definite guidelines to improve legislation in anti-conflict aspect (forms of holding general meetings of participants, exclusive and non-exclusive competence of governing bodies, the content of acts coordinating interested-party transactions, etc.).

Citation

Inyushkin, A.A., Kryukova, E.S., Povarov, I.S. and Ruzanova, V.D. (2019), "Efficient Corporate Governance Is a Driving Force of Uncontroversial Development of Corporation as a Local Social and Economic System", Popkova, E.G. (Ed.) “Conflict-Free” Socio-Economic Systems, Emerald Publishing Limited, Leeds, pp. 297-306. https://doi.org/10.1108/978-1-78769-993-920191034