Unique practice of corporate governance in Ukraine

Abstract

As part of an emerging system of corporate governance in Ukraine formally present all the necessary elements, but in reality the principle of separation of ownership and control is recognized. Like most developing countries the banking sector in Ukraine is dominated by high concentrated domestically-owned, state-owned and foreign-owned. Because of such nature of ownership, widely dispersed corporate ownership is not the rule but the exception. As a result, the key potential conflict of interest in developing, transition and emerging market countries like Ukraine tends to arise, not between managers and shareholders like the United States and the United Kingdom, but between controlling shareholders on one hand and minority shareholders (domestic and foreign), and other investors, on the other.