The Structure of Compliance Control and the Mechanism for its Implementation

Abstract

The article is devoted to the study of certain aspects of the mechanism of corporate compliance control with the aim of providing a theoretical foundation and revealing its substance as a component of the legal framework for business activity. The research analyzes its relationship with the general concept of compliance, defines its place within the system of corporate relations, and characterizes the key elements necessary for its effective implementation. It is demonstrated that corporate compliance and corporate compliance control hold an important position in the corporate governance system of business entities, particularly commercial companies. It is noted that the connection between these concepts is of conceptual significance, as it influences the definition of all elements required for the implementation of the corporate compliance control mechanism. Within this mechanism, a distinction is made between the elements on which it relies and the elements through which it is carried out. The first group includes objects, subjects, the regulatory and legal framework, and outcomes; the second group comprises forms, methods, and tools of implementation. All elements of the corporate compliance control mechanism are characterized and specified. It is established that the object of corporate compliance control encompasses two components: (1) the behavior, decisions, and actions of employees, management bodies, and owners of a business entity; and (2) the internal regulations of the business entity, which set out specific requirements for the conduct, actions, and decisions of the persons. It is substantiated that corporate compliance control is carried out through forms that reflect the external and organizational aspects of its implementation; methods, which are the means of conducting control and may be combined within a particular form; and tools, which are the direct instruments of control, with their selection primarily depending on the methods of compliance control employed.