Legal Protection of Corporate Rights in Ukraine and the EU – Some Challenges
Creation of effective system of registration and protection of property, including corporate rights, is a key factor in the development of a successful economy in Ukraine where the institution of private property was introduced only upon declaration of independence by Ukraine in 1991. In spite of its economic potential, even 28 years upon becoming an independent state, Ukraine remains the second poorest economy in Europe (after Moldova) which, to a large degree, can be attributed to the lack of free market in the country which did not exist in the USSR. The private property is essential in motivating private owners to act efficiently upon the market data transmitted via market prices. The existence of free market is essential for rapid economic growth in Ukraine whose legal system lags behind the development of legal institutions in the EU. Ukraine needs to build a basic market infrastructure including a reliable corporate rights register which needs a substantial enhancement in Ukraine. The article proposes to use methods and approaches developed by the financial industry to fight fraud to make the use of falsified documents in changing registry entries difficult or even impossible.
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