LEGAL FORMS OF THE BUSINESS COMBINATIONS IN THE ECONOMIC ORGANIZATIONS OF BIG BUSINESS

Author

, PhD. Student, Kharkiv, Pushinska, 77
ORCID ID:

In heading

Law;

Signed print

21.04.2017

Issues number

2017 - № 2 (29)

Page

157-168

Type of articles

Scientific article

Code UDK

346.2:330.33

ISSN print

2411-5584

Abstract

Problem setting. The decisive factor for the formation of system of interaction that allows to integrate national economy to the global market is the activity of corporations and its associations. That is why study on corporatization economy is theoretical and practical interest.
Recent research and publications analysis. This issue was considered by some scientists and business executives, in particular D. V. Zadykhaylo, I. V. Lukach, I. S. Shitkina
Paper objective. The purpose of this article is to study the economic and legal characteristics of the organizational and legal forms of the functioning of economic organizations of big business.
Paper main body. More often, big business organizations are created in the form of a consolidation companies of a holding type with an extensive system of corporate (affiliated) enterprises united by a holding company.This is due to the fact that the economic organizations of big business accumulate significant capital, and therefore the advantages of creating holding and affiliated companies are associated with the effect of scale production.
Uniting the productive capacity of various companies and business organizations holding companies can achieve greater efficiency in their activities by reducing of costs and the redistribution of profits.
The evolutionary scenario is typical for modern organizational and legal forms of big business. And from the definition contained in the Law, it becomes clear that subsidiaries can be created only in the form of public joint-stock companies that have corporate rights. However, there is often a situation in which enterprises of holding type are formed spontaneously by combining several economic entities that do not always function in the forms of PJSC.
Economic organization formed in any organizational and legal form than public jointstock company, cannot be qualified as a holding company. This does not preclude the recognition of such companies by associates, affiliated persons, related persons under the Economic Code of Ukraine, the Law of Ukraine “On Joint Stock Companies”, the Tax Code of Ukraine and others.
Conclusions of the research. It is regrettable to note that the Law of Ukraine “On Holding Companies” has significant disadvantages and is aimed at regulating relations that arise in state holding companies, which is connected with the moments of corporatization that occurred in the past in Ukraine. But in the private sector of the economy, associated circuits between associated enterprises arise in the course of evolutionary development, usually by acquiring stakes in the authorized capital of the enterprise or by creating a number of enterprises with another beneficial owner.
Short Abstract for an article
Аbstract. The problematic issues of legal certainty of the organizational and legal forms of functioning big business are indicated in the article. The author ascertained that imperfect legislative regulation of the activities holding type of companies creates a situation where, along with formally formed holdings headed by a management company in Ukraine, corporate structures function that are not bound by formal connections but have signs of holding companies. The author substantiated necessity of detailed legislative settlement.

Keywords

economic organization, holding, economic concentration, the legal status of big business companies.

Reviewer

External reviewer

Article in PDF

157-168

Bibliography

none

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06.03.2017