CORPORATE CONTROL

Abstract

In the various theoretical sources, the corporation is most often considered as a legal entity that appears as an object of obligations under a certain law and is created by one or more natural persons for a certain purpose. Usually, the owners of the corporation, who are shareholders, hire other people to run it, such as a board of directors. Thus, those who manage and make decisions for the corporation are not shareholders, but managers. Thus, a corporation is a legal entity created to do business and has the same rights as an ordinary enterprise, to own and trade its own shares, to buy raw materials, materials and assets, to produce and sell goods and services, etc.
The corporation is managed by a manager or team, such as hired management personnel, who are responsible for the corporate debts, which does not apply to shareholders, and even if there is a risk of loss of liquid assets, this only applies to their invested capital, as per thus, corporate business is characterized by limited liability. In addition, there are no risks and complications in the transfer of rights to shares when they are sold, which means that the sale of shares cannot undermine the entire activity. Regardless of everything, in corporations, corporate management and corporate control come to the fore, the latter having the objectives of protecting the interests of the shareholders, monitoring the rights and obligations of the governing bodies, preventing conflicts of interest, controlling information about interested parties such as customers, suppliers, creditors, competitors, institutions, etc., as well as for its disclosure and transparency, to monitor the existence and application of an anti-corruption policy and an environmental and personnel policy, for the establishment of an audit committee, and internal control systems and audit etc.