Principles Guiding the Activities of Public Companies in the European Union

Objective: The article considers the principles of corporate governance in the activities of public corporations in the European Union developed in the late 20th and early 21st centuries. Methods: The authors traced the chronological development of corporate governance principles, such as information disclosure, operational transparency, shareholder rights equality, and the protection of creditors and other company participants. The analysis included a review of EU legislation and the legal acts of individual countries, such as Ukraine and Russia. Results: The commonly accepted definition of a public company in dictionaries and regulatory acts is incomplete as it reflects only one characteristic, i.e., the free circulation of shares on the market. According to the new definition, a public corporation is a legal entity with a public nature of operations, obligated to adhere to corporate governance principles. Its supreme governing body is the general meeting of participants, and if securities are issued, they must comply with the stock exchange’s listing requirements. Originality/Value: The authors offer a thorough chronological analysis of the evolution of these principles, highlighting their role in fostering transparency, safeguarding shareholder rights, and upholding the interests of creditors and other stakeholders. This work’s key contribution is its proposal for a more comprehensive definition of a public company that extends beyond listing shares on the stock market, emphasizing the necessity for public corporations to adhere to corporate governance standards, as outlined in OECD documents. This refined concept presents a valuable framework for strengthening legal systems, particularly in Kazakhstan, by incorporating best practices from the EU and OECD.