Legal status of the company's share in own authorized capital under the Law of Ukraine “On limited and additional liability companies”: problems of legal regulation

Introduction. Nowadays, the issue of determining the legal status of the company's share in the own authorized capital of LLC and TDV has become quite acute, as evidenced by the adoption on July 28, 2021 by the Commercial Court of Cassation in Case № 904/1112/20, in which the Court established a new approach legal nature of such a phenomenon and expressed his own position on the understanding of the legislation concerning the legal status of the share of LLC and TDV in its own authorized capital. Given that a limited liability company is the most popular type of legal entity that is chosen to conduct business in Ukraine, the analysis of this issue is relevant. Some scientific value for the development of the transfer of the participant's share are the works of individual authors devoted to the study of the legal nature of the share in the authorized capital but the problems arising around the legal status of the company. in their own authorized capital in these works were only mentioned along with others, but did not receive a detailed separate study. The purpose of the paper is to analyze the normative regulation of the legal status of the company's share in the own authorized capital of LLCs and ALCs, identification of shortcomings in their legal regulation and implementation, as well as the search for ways to eliminate them. Results. One of the most relevant decisions concerning the subject of this article is the Judgment of the Commercial Court of Cassation in case № 904/1112/20 of July 28, 2021. The court in this case found that the votes attributable to the share belonging to the company itself are not taken into account when determining the results of voting at the general meeting of participants on any issues. However, Ukrainian legislation does not contain any direct norms that would prohibit the exercise of the right to manage a company in relation to itself on the basis of a share in its own authorized capital. That is why the company cannot be a participant in relation to itself, although they seem logical, but do not have sufficient regulatory support, and therefore do not allow to be firmly convinced of their compliance with the law. In view of this, it can be stated that there is a significant gap in the national legislation on this issue, which, in our opinion, the Court failed to “fill” with this decision in the case. Conclusion. In the Ukrainian legislation at the level of the Law of Ukraine “On Limited and Additional Liability Companies” Article 25 defines the possibility for a company to acquire a share in its own authorized capital. However, the regulation of the legal status of such a share cannot be called sufficient, due to which in practice there are certain problems in the implementation of the provisions of the legislation concerning the share of the company in its own authorized capital. The solution of these legal problems is necessary to ensure the highest quality and clarity of the law, as well as to form case law with common approaches to understanding a single rule.

Financial statements as the main source of information on the enterprise activity

The essence of effective management of each business entity depends primarily on transparency and disclosure of information about its financial and economic activities. The financial report itself covers all important information about the state of the enterprise and provides an opportunity to obtain financial status with it by the interested user for further analysis and decision-making on further activities. As a rule, investors of creditors, state bodies, representatives who are preparing in construction with the business entity are interested in financial reporting. In order to provide more detailed and informative financial reporting to users, it is necessary to compile it with international standards, which act as tools for globalization of the economy and contribute to the development of global economic relations. During 2020–2021, the activities of enterprises took place in extremely difficult conditions, which is why the pandemic significantly affected the financial reporting indicators. Today, there is an appropriate use of intelligent technology and computer technology in the formation of financial statements. Financial statements based on taxonomies of financial statements for IFRS are prepared and presented in a single electronic format using Extensible Business Reporting Language (XBRL). XBRL is a generally accepted international standard for presenting financial statements in accordance with IFRS in electronic form. With the help of IFRS, Ukrainian companies have more effectively solved the following tasks: attracting investments and loans from the world's largest companies and banks, the ability to service financing from foreign banks and other organizations; placement of shares on international stock exchanges; providing the company's management with reliable information for making management decisions, as well as evaluating their adoption. Thus, today the economy of Ukraine depends on the choice of IFRS as a conceptual basis for accounting and its practical implementation. After all, the financial statements are fully open to internal and external users to make informed management decisions regarding cooperation with the relevant entity.

Regional budget policy: conceptual dominants and vectors of development

The paper is devoted to the implementation of regional budget policy in Ukraine. The main vectors of budget policy development as a component of socio-economic policy at the local level are highlighted. Within the framework of the declared budget policy, the peculiarities of the formation and functioning of local (regional) budgets are considered. The interpretation of the definitions of "budget" and "policy" is presented, and the author's definition of the essence of the budget policy of the region is offered. The conceptual dominants of budget policy, the implementation of which takes place through the budget mechanism, are studied. It is proved that budget policy is an important lever of influence and a real reflection of the tactics and strategy of public authorities and local governments in the budget sphere. It is substantiated that the effectiveness of the implementation of regional budget policy directly depends on the sequence of steps aimed at increasing the level of competitiveness of the regions and overcoming the existing regional disparities. On the basis of generalization of thematic researches and practice the offers concerning application of levers of budgetary regulation which define a level of efficiency of budgetary policy of region are formulated. It is stated that the content of the budget policy of the region should be to determine the course, tasks and activities of the state and local governments in the field of formation and use of budget funds. Full implementation of the budget policy of the region stimulates the functioning of economic activity of administrative-territorial units, promotes rational budget planning, as well as the effective filling, distribution and use of local financial resources.

Assessment of the impact of the COVID-19 pandemic on the poverty of households

Introduction. The COVID-19 pandemic has caused grave and severe losses in many of the economies across the globe. The impact and the duration of the economic crisis occurring due to the pandemic among certain households is difficult to anticipate since the indeterminacy is being defined through the duration of the crisis and costs for the recovery of the economy. The purpose of the paper is to study theoretical aspects related to the assessment of the impact of the COVID-19 pandemic on the poverty of households. Methods. The theoretical and methodological basis of the study are modern theories, concepts, hypotheses. Comparative analysis is used. The methodological and information basis of the work are scientific works, materials of periodicals, information resources. Results. The paper incorporates a content analysis of studies focusing on the economic impact of the COVID-19 on the development of national economies. The majority of studies assess economic implications of the COVID-19 however they are concentrated on the macroeconomic and financial impact of the Corona Crisis. The impact on national economies is subsequently reduced to the microlevel, specifically the social and economic impact on individuals. Nonetheless, there is a need for a microanalysis which may better describe the interrelation between sectors and countries (the effect of macroeconomic aggregate indicators) and supplement the macroanalysis, providing more relevant evaluations of the impact of the distribution of income, outline the authorities of households, the role of people's savings, determine the resilience of households. The work establishes main assumptions and restrictions of formulating the model of impact of social and economic implications of the COVID-19 pandemic on the poverty of households Conclusion. Taking into consideration the distribution of incomes for various sectors, the proposed model allows to ensure the assessment of losses in the consumption of households, savings depletion and time for their recovery. It has been proven that without the social protection of the population the Corona Crisis will lead to a massive economic shock for the national economy. Prospects of further studies lie in the assessment of the impact of indirect macro-level factors, role of indeterminacy in the decision-making of households and implications in case of numerous waves of social crisis as well as the possible effect in the condition of concurrent exogenous shocks.

Recommendations for diagnosing the cash flows at the enterprise

Introduction. The current stage of functioning of domestic business structures shows the exacerbation of the deficit of different types of resources for their activities. Today the solvency of a large number of businesses is particularly critical. In such circumstances, there is a need to find progressive and effective management tools and technologies that will provide comprehensive, accurate and timely information about the cash state of the enterprises in order to make adequate management decisions. In view of all the above, it can be argued that the diagnosis of cash flows of the enterprise is a necessary component of management in modern business conditions. The purpose of the paper is to develop a unified and logically sound sequence of diagnosing cash flows of the enterprise. Results. The results of the conducted research allowed to offer a unified sequence of diagnosing cash flows at the enterprise, which is based on the following stages: formation of information base for diagnosing cash flows; determining cash flows by type; estimating cash flows based on calculating indicators of uniformity, synchronicity, balance, liquidity, sufficiency; monitoring the diagnosis of cash flows and finding possible causes of deficiencies; development of recommendations to eliminate the shortcomings of diagnosing cash flows of the enterprise. It has been established that a number of principles should be taken into account when selecting diagnostic indicators, namely: purposefulness, dynamism, complexity, representativeness, efficiency, functionality, avoidance of mutual exclusion, interconnection. The main sources of information for diagnosing cash flows of the enterprise are various forms of financial and management statements, accounts, agreements and more. Conclusions. The main advantages of the developed sequence of diagnosing cash flows at the enterprise is that it allows to evaluate the most representative indicators that determine the uniformity, synchronicity, balance, liquidity, cash flow adequacy and more. Based on the calculations, you can diagnose the state of cash flows and, if necessary, develop effective measures to eliminate identified discrepancies.

Certain aspects of current state of domestic financial market

Introduction. The financial market, as a combination of exchange and redistribution relations associated with the processes of purchase and sale of financial resources is a complex system that is an indicator of the development of the economy as a whole. In the context of global challenges, the development trends of the financial market and its components are expanding. The securities market today occupies an increasing segment of the financial market, despite the fact that it is under development. Recently, it is characterized by a high level of dynamism. And already now it has positive results for the participants. Purpose. A study of the securities market, the structure of its financial instruments and the circle of participants. Results. Modern financial processes are characterized by the emergence of new financial instruments and technologies, which expands and forms an alternative to the placement and attraction of financial resources outside of banking institutions and increases the circle of participants. An example is the emergence of Internet trading. Internet trading is a system of securities work that gives the investor access to exchange information, and also makes it possible to conclude transactions on the purchase and sale of securities on the exchange in real time using a special certified program installed on a personal computer. The expansion of the range of financial instruments that contribute to the increase of the circle of participants in the financial process in the stock market occurred at the expense of Bonds of Internal Government Loans of Ukraine, whose income rates are higher then bank. They became the first hryvnia instruments included in the global indices of debt securities MVIS (MV Index Solutions. Also in October this year, the National Commission on Securities and Stock Market decided to allow the circulation of foreign securities in Ukraine. As a result, today Ukrainian investors can use the opportunity to invest in 85 securities of foreign issuers. All this makes it possible to obtain additional financial resources for both individual (households) and collective entities (communities). Conclusion. Domestic government bonds are effective financial instruments for the majority of participants in the investment process in the stock market are the first hryvnia instruments to be included in the the global MVIS debt securities indices. There is also a tendency to expand the circle of participants and the structure of financial instruments of the Ukrainian stock market due to the possibility of purchasing state securities by territorial communities, as well as admission of foreign securities by the Cabinet of Ministers of Ukraine.

Problems and prospects for the development of social entrepreneurship in Ukraine in the conditions of transformation economy

The paper is devoted to the study of prospects, problems and opportunities for the development of social entrepreneurship, which necessitates the study and generalization of the experience of Ukraine and other countries. The paper examines the main approaches to defining the concept of “social entrepreneurship”, in particular a broad approach, combined (commercial and social), innovative and problem-oriented approaches. It is generalized that social entrepreneurship is an activity aimed at solving social problems and meeting the needs of society; a unique opportunity to combine a social mission and a desire to make money, provide some services and sell goods. The historical aspects of the formation of this type of entrepreneurship are considered. The functions aimed at adapting to crisis situations and the conditions necessary for the existence and full functioning of social entrepreneurship are highlighted. The main functions of social entrepreneurship are the creation of new jobs and reduction of social tension. The issues related to the negative factors and problems of development of this type of entrepreneurship are substantiated and covered. It was found that the process of forming a tool for managing social entrepreneurship in the country of transformation economy is quite slow. At the same time, the most acute problem is the lack of start-up investments and the lack of competition for funding, as well as bureaucracy, corruption, rapid price increases and the instability of the state economy. Opportunities and measures have been found that will allow companies to improve and develop in a positive way. These include: state support and the development of accompanying laws and regulations, the mobilization of untouched resources and the attraction of foreign investment.

Financing social protection in Ukraine on the basis of EU best practices

The paper analyzes the main aspects of the organization and support of territorial communities in the field of social security of the population of Ukraine. The main directions of development of the process of providing social services are outlined. The main instruments of budget financing of social protection and social security of the population of Ukraine are determined and the effects that affect the volume of expenditures of the State and Consolidated budgets on the social sphere are investigated. The existing problems in the field of social security are studied and the need to harmonize social standards with the standards of the European Union is emphasized. The thesis is put forward on the need to implement a number of measures for Ukraine's timely response to the sharp increase in socio-economic needs in the global crisis. Emphasis is placed on the problems and prospects for the development of social security in the decentralization process. The range of problems for the effective response of social policy to rapid changes in the development of the modern world economy is outlined. The necessity of the analysis of the EU experience in the field of social security and the need to adapt the best European practices in order to comply with the Western European models of social protection and / or social insurance is substantiated. The need to apply the tools of theoretical and methodological analysis of the conceptual foundations of sustainable development of social security to specific circumstances and realities in Ukraine. The study focuses on the relevance of strategic and operational objectives of the new Law of Ukraine "On Social Services" and the need for further harmonization of existing legislation with the basic standards of the Council of Europe and the European Union.

Peculiarities of accounting and control of current liabilities of the enterprise

Introduction. The crisis state of the domestic economy and a number of other factors require domestic enterprises and other levels of management to take prompt and drastic measures aimed at increasing the level of management. One of the promising and proven directions for increasing the efficiency of the management level is the increase and qualitative growth of the accounting system and the internal control system. One of the most important and difficult areas of accounting and control work (determining the final results of the financial and economic activities of the enterprise and its financial condition) is the accounting and control of liabilities, primarily current ones, this is what determines the direction of this research. The purpose of the paper is to improve the accounting and control of current liabilities by developing measures to eliminate violations and prevent them in the future. The methodological basis was dialectics, philosophical methodological methods of cognition. Results. The paper examines approaches to clarifying the definition of “current liabilities”. The most significant problems of modern economic activity of the domestic economy are investigated: low contractual discipline, crisis of non-payments, global chronic violation of the terms and conditions of payment for liabilities, primarily for current liabilities. A number of measures were proposed to eliminate violations in accounting, control current liabilities and prevent them in the future; non-admission in the practice of economic activity, accounting and control of delays in the terms and conditions of payment for liabilities. The studies have shown the need to improve the level of planning and contractual discipline, financial planning, improving document flow, accounting and control work at the enterprise. Conclusion. The main conclusions of the study are: the need for further research on this issue; introduction of a payment schedule for liabilities; the need to develop a methodology for checking current liabilities by the internal control system, compliance with contractual discipline; scheduled regular inspections of facilities and processes related to accounting and control of current liabilities.

Negotiation and mediation as a means of peaceful settlement of international economic disputes

Introduction. Interstate interaction and integration, on the one hand, are the key to the successful functioning of humanity, and on the other hand, they provoke the emergence of international differences and conflicts, including those of an economic nature. Successful settlement of economic differences in accordance with the principle of peaceful settlement of international disputes is a necessary condition for strengthening and developing international cooperation. The issue of peaceful settlement of economic disputes, including through the use of diplomatic means, has been studied by such authors as I.V. Grynchak, О.M. Malysheva, Z.V. Tropin, etc. The purpose of the paper is to determine the specifics of negotiation and mediation as political ways to resolve economic disputes peacefully. Results. In international legal doctrine, the most common is the division of peaceful means of resolving international disputes into diplomatic (political) and legal (judicial). The most common are negotiations, good services and mediation, international arbitration. International negotiations, as part of the system of international relations, on the one hand, feel their influence, acting as a tool in solving a range of foreign policy and, in some cases, domestic policy problems, on the other – themselves affect international relations, largely defining and shaping them. The difference between mediation and negotiation is that a third party intervenes in the dispute resolution process with the aim of reconciling the parties. At the same time, the role of the mediator is quite passive, the purpose of his activity is to establish a constructive dialogue between the conflicting states. Therefore, the result of applying this method in some cases can only be reduced to the resumption of negotiations. Conclusion. Negotiation and mediation are diplomatic (political) means of peaceful settlement of international economic disputes. Such means of resolving international economic disputes are used in the presence of a common will of the parties to resolve the conflict, and a common focus on finding a mutually beneficial and compromise solution to the dispute. A key difference between negotiation and mediation is the involvement of a third party in the mediation process, which helps the parties to reach an agreed and compromise solution.