home Economy Business Economics - Pokropivny SF

Business Economics - Pokropivny SF

1.2. The legal basis for the functioning

Areas of activity are interdependent and together describe a particular strategy for the functioning and development of the enterprise, its economic mechanism. Businesses (firms) have to work only within the law regulating all areas of their activities. We have, in particular, the determining factor is the law of Ukraine "On Enterprises in Ukraine", the statute of the enterprise, as well as coordinated with the current legislation of the collective agreement, which regulates the relations of the staff with the administration of the enterprise (firm).

Law on Enterprises. Law "On Enterprises in Ukraine", which regulates the activities of the various types of enterprises, adopted by the session of the Supreme Council of Ukraine on 27 March 1991. Later it have been made some changes. This law defines the types and forms of organization of the enterprise, rules of their creation and liquidation mechanism for the implementation of their business activities; It creates equal legal conditions for enterprises regardless of their form of ownership and economic system; ensure the independence of enterprises, clearly fixes their rights and responsibilities in the implementation of economic activity and regulates relations with other business entities and the state. The main provisions of the Act (the essence of his section) are reflected in Figure 1.3. In order to correct their understanding of the need to explain the most basic of them.

Fig. 1.3. The main provisions of the Law of Ukraine "On Enterprises in Ukraine"

Creation, registration, liquidation and reorganization of enterprises. Any business can be created:

1) in accordance with the decision of the property owner or authorized agencies of, the organization - founder; 2) as a consequence of the forced division of another enterprise in accordance with applicable antitrust laws; 3) by separating from the existing businesses of one or more structural units to solve their labor collectives and with the consent of the property owner (authorized body).

The company has the right to establish their branches (representative office, branch or other separate units) with current and settlement accounts at the bank.

Each newly created company is subject to state registration at the place of its location in the relevant executive committee of the Council of People's Deputies for a fee. To this end, the company is local government statement, the decision of the founder of the establishment, constitution and certain other documents of the Cabinet of Ministers of Ukraine. Data on the state registration according to the Ministry Economy and the State Committee of Statistics, and the company entered into the State Register of Ukraine, in accordance with its identification number code.

The company can be liquidated (reorganized) in the following cases: decision by the owner of the property, recognition of the company bankrupt, or the prohibition of its activities for the non-fulfillment of the conditions established by the legislation. The liquidation committee shall evaluate the cash assets of the Company, to pay off creditors, create and send to the owner of a liquidation balance sheet. The company is considered to be liquidated (reorganized) since its exclusion from the State register of Ukraine.

General principles of business management and self-management of labor collective. now managed in accordance with its Charter based on a combination of the rights of the property owner and the labor collective government principles. The owner sells his rights called enterprise management directly or through authorized bodies m. Administrative rights can be delegated to the Board of the company (board). The supreme governing body of the collective enterprise is the general meeting (conference) of the owners of the property, and executive functions are performed by the board.

The company determines its structure and functional states, production and other departments. The owner immediately hires (appoint, elect) of the head. With the head of the contracted employment of the terms defining the rights, duties and responsibilities, conditions of financial security and order of dismissal. Leader appoints and dismisses it with his deputies, heads and specialists of the structural divisions of the enterprise.

The labor collective of the enterprise operates (farm) on the principles of self-government. This means that it has a specific mandate with respect to a wide range of issues of economic and social activities of the enterprise. In particular, the labor collective with the right hiring examines, approves or participates in matters relating to: the project of the collective agreement; provision of social benefits for certain categories of staff; motivation of productive labor, farm workers to submit to the government awards. The labor collective of the enterprise, where part of the state or local government in the value of the property exceeds 50%, has the right together with the founder or owner to consider changes in the charter of the company and amendments thereto, to determine the conditions of employment of the director; decide on the surrender of the company in the rent, his entry into any voluntary association or exit from it, as well as the creation of new enterprises based on individual business units.

Formation and use of the property business. Company property is a tangible asset and working capital and other assets, the value of which is reflected in its own balance sheet and which belongs to the company on the right of ownership or full economic management (possession, use and dispose of property in its sole discretion). Sources of formation of property of the enterprise are: monetary and material contributions of founders; income from sales of products, other economic activities, from securities; loans to banks and other creditors; capital investments, subsidies from the state and local budgets; proceeds from denationalization and privatization of property or property acquired by the other enterprise (organization); Free or charitable contributions of enterprises, organizations and individuals.

The company, unless otherwise provided by its charter, has the right (with the permission of the owner) to sell, lease, exchange, transfer free of charge for temporary use to other businesses and individuals the means of production, and other tangible assets. It can also issue and sell their own securities to buy them from other entities. An entity is permitted for a fee or on preferential terms to own and use land and other natural resources. In this case it is the responsibility of the implementation of environmental measures (in most cases at their own expense). In case of bankruptcy, the company funding for such activities is carried out with funds from the sale of his property, and in their absence - from the budget of the relevant local authority or the state.

Entrepreneurial (economic-economic) activity. Each company independently plan its activities and determine the prospects (strategy) development, based on the demand for manufactures (work performed services) and the need to constantly increase their own profits and also provides logistical support to the production, implementing direct agreements (contracts) with suppliers or resorting to mediation of trade exchanges. Industrial products are also sold on the basis of direct agreements with consumers, public order (if any), through a network of exchanges and proprietary trading businesses on prices (tariffs), which the company sets its own, at bargain prices, regulated by the state, or at free (market ) prices.

All the enterprises the main general indicator of financial results of economic activities is the profit (income). The procedure for using the profit (income) determines the owner of the company or its authorized body. State influence on the choice of directions of use of the profit (income) via the tax system, tax incentives, various economic sanctions. In cases stipulated by the charter of the enterprise a certain part of the net profit may be transferred to the ownership of the staff members. In terms of external economic activity of the enterprise part of the profit (income) account for hard currency, which is credited to his bank account in foreign currency and are used by it independently. Depending on the size of the enterprise income determined wage fund of its staff.

The company and the state: the guarantee of the rights, conditions and control of, and responsibility. The State guarantees the legitimate rights and interests of each company. Carrying out economic and other activities, the company has the right, at its own initiative take any decision within the current legislation of Ukraine. Except as provided in the legislation of the cases, the intervention of the state and public bodies, political parties and movements in the activities of the company are not allowed. Losses (including expected, but not the profits) caused to the company due to the fault of state bodies or their officials, shall be reimbursed by the latter.

The State shall ensure that any enterprise equal economic and legal environment of managing. To this end, it: promotes the development of the market, carrying out its regulation by economic methods and antitrust laws; It provides favorable conditions for those businesses that are adopting advanced technologies and create new jobs; It encourages the development of small enterprises by providing tax benefits and state lending, creating a fund to promote small businesses, etc.

Control of the individual activities of the company by the State Tax Inspectorate and State bodies performing supervision over the safety of production and labor (including environmental security) within its competence established by the legislative acts of Ukraine. If the requirements of these bodies beyond their powers, the enterprise has the right not to fulfill such requirements.

In case of violation of contractual obligations and settlement of credit and fiscal discipline, the quality requirements of products and other rules of economic activity, the company is responsible according to the current legislation of Ukraine (pay fines, reimburse the losses caused). However, payment of fines and compensations shall not relieve the company without the consent of the consumer to fulfill contractual obligations for the supply of products, implementation of works or provision of services in full at the appropriate time.

Enterprise Charter. Any company (voluntary association of enterprises) operates under its own charter, that is, a certain meeting of mandatory rules governing his or her identity (total) activity relationships with other business entities. The Charter must comply with the basic provisions of the Law of Ukraine "On Enterprises." He claims the owner or founder of the Company (voluntary association of enterprises) and state-owned enterprises - the owner of the property with the participation of the relevant workforce.

The charter of the enterprise are defined: the exact name and location; the owner (owners) or the founder (s); primary mission and purpose of the activity; controls and procedures for their formation; competences (powers) of the staff and its elected bodies; sources and order of formation of property; conditions of reorganization and liquidation procedure.

In the name of the enterprise need to reflect the type (plant, factory, workshop, etc.), type (private, collective, public, joint stock company), the specific name, and others.

The statute must also be defined body that has the right to represent the interests of the labor collective (council of the labor collective, the works council, trade union committee, and so on. N.). It is possible to include provisions related to the features of the enterprise, namely on labor relations, on the powers, the order of creation and structure of the works council, on trademarks and other.

Collective agreement. The company has an important social role played by collective agreement - an agreement between the labor collective in the face of trade union and administration (the owner or the authorized body), which is (to be confirmed) annually, and can not contradict the current legislation of Ukraine.

Collective agreement governing production, labor and economic relations with the administration of the staff (the owner) of any enterprise employing wage labor.

The collective agreement usually consists of a prologue, acquainting the labor collective of the directions of development and improvement of production (activity), working conditions and cultural and welfare of the employees, as well as several sections, with particular commitment the administration in key areas of the collective activities.

The collective agreement includes a commitment to improve working conditions and the environment; measures to ensure the growth of labor productivity and remuneration, training and skills development, social protection of employees. An important place in the collective agreement take obligations with respect to the construction and maintenance of housing, rest homes, sanatoriums, health care and pre-school institutions, sports and recreation complexes. The collective agreement also includes a separate section, which determines the order of participation of workers in the use of the company's profit, if it is provided by the charter.

Parties to conclude and sign a collective agreement, must be periodically (at least twice a year) to report on its implementation at the meeting (conference) of the labor collective.