On management issues in joint-stock companies

The article features comprehensive research on an individual executive’s combination of several positions on the board. The problem is shown in the context of contradictions between ownership and management, formed in the 19th century (the agency conflict). The formation of the board of directors (supervisory board), endowed with its own powers thanks to the individual executive, is one of the means for the owner to maintain corporate control. Nevertheless, a Russian board of directors contains features of both the Anglo-Saxon and Continental corporate governance model, endowed with managing and control powers. That, along with reflecting in the executive bodies the makeup of the share/stakeholders, creates a possibility of personnel overlap of various executive bodies. There have been examined both reasons for the separation of the CEO and director roles (inadmissible incorporation of management and control, potential for self-dealing and other conflicts of interest) and against it (reduction of informational distance between bodies, professionalization of bodies). The study emphasizes the issue of the accountability of the CEO to the board. The corporate governance issues are examined through the notion of “legal strategy”. A classification based on the separation of ex ante and ex post strategies is presented. The research is based on foreign law and the practice of corporate governance and on the experience of advanced Russian companies that use the best practices of corporate governance.

Keywords

agency conflict, board of directors, CEO, corporate control, corporate governance, conflict of interests, joint-stock company, officer, self-remuneration, stakeholders

Received

22.04.2019

Publication date

21.05.2019

Number of characters

29116

Cite

GOST	Laletina A., Kosyakin I. On management issues in joint-stock companies // Gosudarstvo i pravo – 2019. – Issue 5 C. 98-105 [Electronic resource]. URL: https://gospravo-journal.ru/S013207690004865-3-1 (circulation date: 25.04.2024). DOI: 10.31857/S013207690004865-3
MLA	Laletina, Alla, Kosyakin, Igor "On management issues in joint-stock companies." Gosudarstvo i pravo 5 (2019):98-105. DOI: 10.31857/S013207690004865-3
APA	Laletina A., Kosyakin I. (2019). On management issues in joint-stock companies. Gosudarstvo i pravo (5), pp.98-105 DOI: 10.31857/S013207690004865-3

100 rub.

When subscribing to an article or issue, the user can download PDF, evaluate the publication or contact the author. Need to register.

Number of purchasers: 3, views: 1657

Readers community rating: votes 0

1. Verbickij V.K. Iz ideal'nogo real'nomu. Chto dejstvitel'no nuzhno kompaniyam dlya primeneniya na praktike iz corporate governance best practices. M., 2015. S. 3740, 125.

2. Dedov D.I. Konflikt interesov. M., 2004. S. 1. 11.

3. Issledovanie informacionnoj prozrachnosti rossijskih kompanij v 2010 g. [Elektronnyj resurs] Rezhim dostupa: URL: https://www.nes.ru/dataupload/files/science/6484.pdf (data obrashcheniya: 11.08.2018).

4. Marks K. Kapital. Kritika politicheskoj ekonomii. T. 3. Kn. 3. Process kapitalisticheskogo proizvodstva, vzyatyj v celom. Ch. 1 / izd. pod red. F. Engel'sa. M., 1989. S. 479.

5. Monks R. Korpokratiya: kak general'nye direktora pribirayut k rukam milliony dollarov. M., 2010. S. 172.

6. Obzor inostrannyh zakonodatel'stv ob akcionernyh kompaniyah. SPb., 1896. S. 280, 281 (avtor glavy M.V. Pozner).

7. Rudyk N.B. Struktura kapitala korporacij. Teoriya i praktika. M., 2004. S. 99 - 103.

8. Smit A. Issledovanie o prirode i prichinah bogatstva narodov. M., 2016. S. 687.

9. Taleb N.N. Antihrupkost' [Kak izvlech' vygodu iz haosa] [Elektronnyj resurs] Rezhim dostupa: URL: https://econ.wikireading.ru/78154 (data obrashcheniya: 09.09.2018).

10. Tekut'ev D.I. Pravovoj mekhanizm povysheniya effektivnosti deyatel'nosti chlenov organov upravleniya korporacii. M., 2017. Par. 3.1 // SPS Konsul'tantPlyus.

11. Berle Adolf A. Jr., Means Gardiner C. The Modern Corporation and Private Property. New York, 1933. P. 94.

12. Davies P., Hopt K. J., Nowak R., van Solinge G. Corporate Boards in Law and Practice. A Comparative Analysis in Europe. Oxford, 2014. P. 19.

13. Kraakman R. et al. The Anatomy of Corporate Law. A Corporative and Functional Approach. Oxford, 2017. P. 37 (avtory glavy J. Armour, H. Hansmann, R. Kraakman).