Transfer of Enterprise or Corporate Rights to Management as a Legal Tool to Prevent Conflicts of Interest

The article is devoted to elucidating the specifics of legal protection of conflict of interests in connection with the presence of enterprises or corporate rights in a person. The content of key legal definitions of «entrepreneurship», «corporate rights», etc. is disclosed. Signs of real and potential conflicts of interest are given. It was established that the subjects subject to the legal imperative to transfer to the management of enterprises and/or corporate rights in order to prevent conflicts of interest include: persons authorized to perform the functions of the state or local self-government; officials of legal entities under public law, including those in the field of health care; members of the Council of the National Bank of Ukraine; persons who are part of the supervisory board (except for independent members) of a state bank, state enterprise or state profit-making organization, economic company, in the charter capital of which more than 50 percent of the shares (shares) belong to the state. The importance of observing the deadlines for notification of the transfer of enterprises and/or corporate rights in connection with a conflict of interests is emphasized. Methods of transferring corporate rights to management are given. Particular attention is paid to the prohibition to transfer the management of enterprises and corporate rights to the benefit of one's family members, as well as to conclude relevant contracts with business entities, investment firms and asset management companies in which family members work. It has been established that when calculating the term of transfer, as well as when determining the date of notification of such transfer, it is necessary to use the general rules for calculating terms defined by Articles 253 and 254 of the Civil Code of Ukraine. The practice of transferring corporate rights under conditions conflict of interest prevention is analyzed. It has been established that a person will be considered to have properly fulfilled the specified requirement if he has fulfilled all the necessary conditions, namely: he has personally notified the National Agency for the Prevention of Corruption about the transfer to the management of the enterprises and/or corporate rights belonging to him; such notification was made within 1 day from the moment of transfer to management (and not from the moment of notarization of a copy of the relevant contract); a notarized copy of the concluded contract was provided to the National Agency for the Prevention of Corruption