On management issues in joint-stock companies

Publication type Article
Status Published
Affiliation: Institute of State and Law of the Russian Academy of Sciences
Address: Russian Federation, Moscow
Affiliation: JSC “Concern “Sozvezdie”
Address: Russian Federation
Journal nameGosudarstvo i pravo
EditionIssue 5

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.

Keywordsagency conflict, board of directors, CEO, corporate control, corporate governance, conflict of interests, joint-stock company, officer, self-remuneration, stakeholders
Publication date21.05.2019
Number of characters29116
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