Svitlana Renkas - about Arricano’s corporate relations experience
Svitlana Renkas, the Director of Legal Department (residents) of Arricano Real Estate plc, took part in the V Annual Forum of Legal Advisors.
The Legal Practice newspaper editorial office has been collecting specialists for the fifth time to discuss current legal and law matters. At the V Annual Forum in five panel sessions, 300 participants were focused on such topics as: the legal adviser's profession development and informatization's impact, corporate relations, procedural innovations, business assets' protection from criminal law pressures and cyber attacks, and contractual relations. There also was an active discussion on Doing Business in Ukraine: Expectations vs Reality.
Svitlana Renkas appeared in the Corporate Relations panel with the report on Practical Implementation of Some Corporate Relations Aspects and raised the question of how the law provision works in the company's real life. The widely known Sky Mall case became an example of how 1 share changed the business's destiny. The speaker noted that the ideally prepared documents do not always protect business from impurity in partnership, because an aspect can be found in any document, which an indecent shareholder can use to deceive.
While considering corporate relations as such that are built between owners (members of a particular association), as well as the administrative staff (TOP management) and other shareholders, whose task is to manage business within the law and the right, through the resources' efficient use for profit, the speaker emphasized that the business relations' ethics can be a risk zone, which is difficult to protect by legal instruments. «Business logic is different from legal thinking», - Ms. Renkas noted. - «Shareholders do not always remain partners, friends. There are situations when 1% of the limited liability company's authorized capital can become equal to real estate, the value of which is several million dollars. There are no violations from a formal legal point of view, but in business thinking logic this approach is absurd».
Partnership business culture and the protective mechanisms' formation for the owner remain unsettling topics for business, precisely because the state is often the opponent to the shareholder.
A separate discussion at the V Annual Forum of Legal Advisers was devoted to the investment attractiveness of Ukraine.
Official statistics show a drop in foreign investment in the Ukrainian economy: according to the State Statistics, the volume of foreign investment in Ukraine amounted to UAH 2.3 billion in January-June 2017, which is 1.9 times less than in the same period of the last year. «The immature business culture that sometimes throws us back in the 1990s, when it is possible to deprive the asset with impunity using force and corruption schemes, shows that there are no guarantees for ownership by the state», - notes Mykhailo Merkulov, CEO of Arricano Real Estate Plc. CEO of Arricano believes that the braking reason that foreign business does not invest in Ukraine is obvious: the authorities demonstrate a low tolerance for corruption and extremely low reforms' dynamics, so the investor doubts, although investors have grounds to invest money in the country, they are interested in Ukraine and see its great potential. The changes in the judicial, legal and legislative system that guarantee investment and property rights' protection would be appreciated. «Such cases as the Sky Mall are the worst examples for the investment climate in the country», - said CEO of Arricano.