FEATURES OF CORPORATE GOVERNANCE OF VENTURE JOINT-STOCK COMPANIES

Abstract

The relevance of this scientific work is due to the fact that in the conditions of modern economic and legal relations, startups and corporations with the involvement of venture capital (especially foreign) have become widespread in international practice (conditionally we called them venture joint-stock companies (VJSC)), which, however, remained outside the scope of regulation of the legislation of the Republic of Armenia.

As a result of the above-mentioned regulation, the RA legislation has lagged behind modern trends, does not regulate the VJSC as a separate, independent type of corporation, the issues of their flexible corporate governance, the formation of management bodies, special rights and privileges granted to foreign venture investors, thereby creating unnecessary obstacles to venture investments and capital inflows and the creation of startup companies.

The purpose of the study is to identify the features and specific features of VJSC corporate governance, the specifics of the formation and activities of their governing bodies-the meeting, the board and the executive body, the rights and privileges certified by shares of venture investors who are shareholders of VJSC, in comparison also with joint-stock companies of a general type.

In accordance with this, the amendments and additions made to the law, their shortcomings and omissions, the unreasonableness of restrictions on the rights granted to venture investors by ordinary and preferred shares, the powers and special rights of venture investors within the framework of the formation and activities of management bodies, as well as their substantive elements were studied and analyzed.

As a result of the conducted research and studies, it was proposed to introduce a unique corporate governance system of VJSC as a special type of corporation, the features inherent in each of their governing bodies, which will bring the current legislative regulations in line with progressive trends and the development of corporate law.

The results of the study are of important theoretical and practical importance, since they make it possible, on the one hand, to form a theoretical understanding of the features of the VJSC, on the other -in practice to establish startup VJSCs and ensure their normal functioning.