Business Associations

If the national accounting standards referred to as the control of a decisive influence on the enterprise policy, the Law of Ukraine "On taxation of corporate profits' under monitoring understands possession, directly or through related persons or entities authorized the largest share of the enterprise, or managing the largest number of votes in the governing body enterprise, or an ownership interest, not less than 20% of the share capital of the enterprise. Please note that just 20% – no more and no less. To be honest, all these approaches have several disadvantages. First, the governing board of the status Directors and top managers are not so undeniable. In many companies, the real policy can be formed in the consultative and advisory bodies created by the board of directors, if not beyond corporation. The structure of the largest Ukrainian business groups ('Interpipe', 'SCM', 'ISD') present the operating companies, which determine the fundamental questions of controlled enterprises.

Second, in these approaches underestimated sources of control, not related to ownership of shares and voting procedures. It is quite possible, for example, a situation where the influence of big lender is more important than the power of large shareholders. As quoted above the law 'On Corporate Profit Tax' is considered a sign of control ownership stake in the largest or the largest number of votes. It is absolutely not considered the possibility of consolidating shares (votes) by small opposition groups, resulting in the largest shareholder control is a fallacy. And as a 20 percent share in the authorized capital as a sign of control – it does is absurd. If any group controls 20% of the voting shares, then that group, according to the Law of Ukraine "On Business Associations", can only block the adoption of individual decisions, but does not control the joint-stock company (JSC). To implement unchallenged control over the Ukrainian Autonomous shareholder must have at least 90% of the voting shares.