Legal regulation of corporate governance in global business: Main problems and current trends

Abstract

The relevance of the study is determined by the current absence of a clear mechanism for managing transnational companies in global doctrine, leading to various problems. Given this, the purpose of the paper is to identify the main problematic aspects of regulations. To achieve this, methods such as legal hermeneutics, logical analysis, formal- legal, deduction, induction, synthesis, and others were used. The study established that transnational corporations are unique subjects of international economic relations with a complex structure, acting as a unified mechanism, complicating their legal regulation since they are not ordinary legal entities. It is disclosed that one of the key problems is that international legal norms regulating the activities of transnational corporations are recommendatory and not mandatory for implementation. Another issue is the need to strike a balance between the interests of transnational corporations and the countries in which they operate. Accordingly, the conclusion is drawn about the importance of introducing control over the activities of transnational corporations by the countries of origin, aimed at ensuring that transnational corporations adhere to international standards and do not harm the countries that host them. The paper identifies problematic aspects and prospects for the development of transnational corporations in Ukraine and Georgia, providing relevant recommendations. The practical value of the obtained results lies in the development of an international and national mechanism that enables the regulation of problematic aspects and enhances the effectiveness of legal regulation of the activities of transnational corporations