Ways of Transferring Enterprise or Corporate Rights to Management by Public Officers in Conditions of Conflicts of Interest: Administrative and Legal Aspect

Abstract

An important tool for preventing conflicts of interest between officials/officers is the transfer to management of the enterprises and/or corporate rights they own. Possession by a person of corporate rights of a company indicates that he has a private interest associated with this company. If such a private interest is present in the sphere of official powers of a person, in the exercise of which he can make decisions and take actions in relation to society, he will have a conflict of interests that requires resolution in the manner established by the Law of Ukraine "On the Prevention of Corruption". The grounds for qualifying a conflict of interest for a civil servant who has corporate rights in a business company are disclosed. Legal ways of transferring corporate rights owned by a person to management are highlighted, namely: concluding a property management agreement with a business entity (except for an agreement for the management of securities and other financial instruments); concluding an agreement on managing a portfolio of financial instruments and/or funds intended for investment in financial instruments with an investment firm that has a license issued by the National Securities and Stock Market Commission to carry out activities for managing a portfolio of financial instruments; concluding an agreement on the creation of a venture mutual investment fund to manage transferred corporate rights with an asset management company licensed by the National Securities and Stock Market Commission to carry out asset management activities. A procedure has been established for complying with deadlines for notification of the transfer of enterprises and corporate rights in connection with a conflict of interest. In accordance with the Law of Ukraine "On the Prevention of Corruption", the need to comply with statutory requirements regarding the timing of notification of the transfer of enterprises and corporate rights in connection with a conflict of interest is directly provided for.