Legal Support of Interested-Party Transactions in the System of Corporate Social Responsibility

Abstract

The article presents a new approach to interestedparty transactions as a legal mechanism that includes elements of its functioning, namely, preliminary measures and measures of subsequent legal protection. Designing legal regulation on the issue of interested-party transactions is discussed. It is revealed that the factors in the formation of this legal mechanism are the institutional environment, political, and legal foundations. The authors suggest an optimal model of legal regulation of interestedparty transactions. The research purpose is to solve the problems of legal support for counteracting the withdrawal of assets by improving the legal mechanism for regulating interested-party transactions through the use of legal CSR tools. During the research, the authors follow the functional and instrumental approaches and use the methodology of economic analysis of law. Within the framework of these approaches to the study of legal phenomena, philosophical methods (dialectical, metaphysical, analytical), general scientific (analysis, synthesis, abstraction, generalization, induction, deduction), special scientific (formal legal, legal modeling, synergetic) are used. The researchers conclude that the identification of the relationship between the institutions for regulating interested-party transactions and CSR, as well as the influence of this relationship on the business reputation of commercial corporations contributes to the improvement of the legal mechanism of interested-party transactions. In the short and especially long term, increased attention to improving the legal mechanism of interested-party transactions and the voluntary implementation of the principles of its functioning by potentially interested parties of corporations will positively affect not only the business reputation of subjects of social and economic relations in regards to the CSR tasks implementation, but will also improve their financial and economic indicators. Keywords--information disclosure; approval of the transaction, invalidity of an interested-party transaction, corporate social responsibility, prevention of corporate conflicts, formation of the corporation business reputation.