The question relates to management decisions. Corporate management bodies are required to follow the law. They must respect the rights and interests of all members of such a society, and their actions must comply with the principles of the company's management model. In the event of violations, the manager may be held liable, including criminally.
Translation of legal texts
The Rising Importance of Soft Law
We mean local lawmaking, which includes the corporate governance code. If the company has worked out this issue, then when organizing activities it should rely on its own legal framework.
Corporate management is not importance of lawyer database mandatory in the work of such a business community and JSC, but if its implementation is planned, all aspects of implementation must be taken into account. Internal documentation can help with this. It describes in detail the rules of effective management and provides recommendations based on current legislation.
Experts highlight the characteristics inherent in corporate management systems:
joint and individual ownership;
insufficiently strong methods of control over business processes (when working for hire, the manager reports only to the main investor);
lack of transparency of activities, difficulties in obtaining up-to-date information about the financial status of the organization, its operations and owners;
violation of laws and norms of etiquette in conducting business: seizure of securities, non-admission of members of the company to meetings, cases of fraud, etc.
The list of problems should be supplemented by the state policy that is still negatively disposed towards entrepreneurship. Most companies do not benefit from becoming transparent due to control by executive authorities, although many difficulties caused by imperfect laws have already been eliminated. And the still high level of corruption does not protect shareholders from losses in the event of interference by officials.
We should also note the gap between the level of wealth of rich and poor Russians. Because of this, people adhere to opposing values and have different attitudes towards the tasks of joint-stock companies.
Recently, our country has been paying more and more attention to corporate governance issues. This helps JSCs develop and make good profits from business.
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