The recent financial scandals involving large corporations in the United States and corporate governance in europe have highlighted the consequences of weaknesses in corporate governance and made reforms in this area a priority.
Two the Most Powerful Corporate Governance in the World
In the ECE region, in principle, there are two established models of corporate governance, namely the model adopted in the Anglo-Saxon countries and the model of the countries of continental Europe. They differ in a number of respects, including with respect to the bodies exercising control, the structure of the board and ownership structure in general, the role of shareholders or the consideration of their interests, and the extent to which the rights of shareholders and creditors are protected. However, none of the systems has demonstrated its superiority.
Powerful forces in EU company law – for example, the need to ensure access to foreign capital markets, pressure from institutional investors, and the formation of a single European financial services market – are driving the convergence of these systems to a large extent. However, the corporate governance system, like other important institutions of society, is difficult to transplant. In the countries of central and eastern Europe and the CIS, corporate governance systems are in the process of formation, and even more so than in countries with mature market economies. Despite very impressive progress in the area of the legal protection of shareholders ‘and creditors’ rights, significant problems remain in the enforcement area.
The Interest in EU Company Law
Interest in corporate governance in Europe is manifested in the emergence of theoretical works and applied research on models, practices, assessment of the quality of corporate governance and its impact on the state of the internal and external environment of the company, etc. In this regard, the purpose of the article is to understand the content of the concept “Corporate governance”; and review existing corporate governance models.
The peculiarity of corporate governance in Europe is manifested in the active influence of the financial system on the activities of corporations:
- Universal banks have the right to provide a wide range of services in the field of commercial lending, investment in blocks of shares of any size at their discretion.
- A low degree of institutional restrictions does not significantly affect the investment activity of banks. For example, one of the onerous rules is the requirement that the amount of eligible investments in shares or real estate objects does not exceed the bank’s own capital.
- Eligible investments are understood as those that give the bank a share in the capital of the firm in excess of 10% *.
- Development of standard requirements for information systems that ensure the creation and maintenance of an ontological model of the activities of organizations in the fuel and energy complex.
- Antitrust laws are not usually used to prohibit cross-shareholdings.
- Development of a unified regulatory framework and standards in the field of cybersecurity, with a focus on ensuring accessibility, while ensuring the integrity and confidentiality of data and information.
- Conducting an ontological analysis of organizations and objects of the fuel and energy sector and the development of unified sectoral information and terminological space, the formation of a scientifically based ontological model of the activity of the unified energy system of Europe, as well as models of oil and gas and coal complexes, including their components with technological equipment of all types.