The article by NIIKPU expert, analyst of the Institute for Economic Strategies Sergey Lutsenko "Transparency of the information provided is a stumbling block in the relationship between the board of directors and the owners of the company" was published in the journal "Economic Strategies" (No. 1.2020).

The author examines the specifics of the presentation of information by the board of directors (sole executive body) of the company to its shareholders. The purpose of this article is to find a balance of interests of interested participants by creating a certain mechanism (algorithmization) that would prevent damage to the company (destruction of its value). In particular, such a mechanism may be the operating regulations developed by the board of directors in order to ensure the transparency of information. The information openness of the meetings of the board of directors will contribute to the management transparency of the company, as well as increase its investment attractiveness. In addition, openness will make it possible to understand the true goals of the strategic decisions of the company's management. On the contrary, lack of transparency in information about a company can hinder its successful development. A feature of the presented work is the search for a balance of interests of the board of directors (executive body) of the company and its owners, finding a certain compromise between the provision of information about the activities of the company by its management (validity of providing information) and prevention of abuse by the owners of their right - the presence of an unjustified interest in obtaining relevant information, intentional creation of objective difficulties that can negatively affect the economic activities of the company as a whole and damage the interests of its owners.

The article provides recommendations on how to improve the quality of corporate governance through the information policy of the company. A compromise regarding the provision of information (including on board meetings) between the company's directorate and shareholders can be achieved through a constructive dialogue that will mitigate the agency problem. The article postulates the need to implement the institution of authorized persons (gatekeepers) into the national legislation. The goal of gatekeepers is to control the behavior of other interested parties when making certain transactions (including transactions related to the withdrawal of assets from the company) that may be aimed at causing losses to the organization, as well as violate the economic interests of other owners.

Read the full article in Expert Library NIIKPU.