The negative impact of the introduction of the legislative model of corporatization of entrepreneurial activity on the state of modern agrarian entrepreneurship

The article reveals the negative consequences of the impact of the introduced civil model of complete corporatization of business entities on the state of modern agrarian entrepreneurship. At the same time, attention is drawn to the ambiguous, mostly critical, attitude of the legal community (employees of state authorities and scholars) to this step, which will cause irrational changes in the subject composition of agricultural producers. The novelty of the aforementioned processes is noted, that has led to an insufficient level of attention to this problem by representatives of agrarian and legal science. The first potentially dangerous point is the gradual, over five years, complete liquidation or corporatization of such an organizational form as an enterprise. This can lead to the liquidation of small group of state agricultural enterprises which, although do not have a significant impact on the gross production of agricultural products across the country, but they are educational and scientific enterprises of higher educational and research institutions, in which educational programs and scientific research results are tested. This situation will only deepen the current crisis, primarily in the breeding sphere with the final irreversible dependence of domestic production on foreign seeds and breeding resources. In turn, the lack of bases for students’ educational practice will lead to a further decrease in the attractiveness of Ukrainian higher agricultural education. It is concluded that the legislative ban on the concept of «enterprise» does not benefit the existing corporate entities of agricultural entrepreneurship, primarily agro-holdings, the organizational structure of which is formed by corporate enterprises managed by a holding company. However, the most significant threat of the considered model of corporatization poses to the existence of farms, which are classified as enterprises, despite the recognition by modern civility doctrine and judicial practice of intra-farm relations not as family, but as corporate, and farms as legal entities – corporate companies. The only, and very controversial, basis for including farms in the structure of enterprises is the provisions of the Economic Code of Ukraine, which classify farms as types of private enterprises. The article consistently argues that this step is not accordance with current legislation.

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Publication Details

Journal
Uzhhorod National University Herald Series Law
Published
2025-03-17
DOI
https://doi.org/10.24144/2307-3322.2025.87.2.28
Primary Topic
Agriculture Market Analysis Ukraine
Type
article
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article

The negative impact of the introduction of the legislative model of corporatization of entrepreneurial activity on the state of modern agrarian entrepreneurship

Volodymyr Yermolenko, Liudmyla Mikhnevych, O. M. Branitskyi
Uzhhorod National University Herald Series Law
Agriculture Market Analysis Ukraine
article

The negative impact of the introduction of the legislative model of corporatization of entrepreneurial activity on the state of modern agrarian entrepreneurship

Volodymyr Yermolenko, Liudmyla Mikhnevych, O. M. Branitskyi
article en

Abstract

The article reveals the negative consequences of the impact of the introduced civil model of complete corporatization of business entities on the state of modern agrarian entrepreneurship. At the same time, attention is drawn to the ambiguous, mostly critical, attitude of the legal community (employees of state authorities and scholars) to this step, which will cause irrational changes in the subject composition of agricultural producers. The novelty of the aforementioned processes is noted, that has led to an insufficient level of attention to this problem by representatives of agrarian and legal science. The first potentially dangerous point is the gradual, over five years, complete liquidation or corporatization of such an organizational form as an enterprise. This can lead to the liquidation of small group of state agricultural enterprises which, although do not have a significant impact on the gross production of agricultural products across the country, but they are educational and scientific enterprises of higher educational and research institutions, in which educational programs and scientific research results are tested. This situation will only deepen the current crisis, primarily in the breeding sphere with the final irreversible dependence of domestic production on foreign seeds and breeding resources. In turn, the lack of bases for students’ educational practice will lead to a further decrease in the attractiveness of Ukrainian higher agricultural education. It is concluded that the legislative ban on the concept of «enterprise» does not benefit the existing corporate entities of agricultural entrepreneurship, primarily agro-holdings, the organizational structure of which is formed by corporate enterprises managed by a holding company. However, the most significant threat of the considered model of corporatization poses to the existence of farms, which are classified as enterprises, despite the recognition by modern civility doctrine and judicial practice of intra-farm relations not as family, but as corporate, and farms as legal entities – corporate companies. The only, and very controversial, basis for including farms in the structure of enterprises is the provisions of the Economic Code of Ukraine, which classify farms as types of private enterprises. The article consistently argues that this step is not accordance with current legislation.

Uzhhorod National University Herald Series LawVol. 2(87)
Weatherford College (US)
Openalex Percentile: Top 93%
Agriculture Market Analysis Ukraine
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