Legal audit of agricultural enterprises
Legal audit of agricultural enterprises
In recent years, the agro-industrial sector has been in the sphere of constant attention both from the side of business and from the side of governments and international organizations. Global processes require an adequate response from the industry to increase food production, deliver products to consumers, use advanced technologies to increase productivity and reduce cost
In addition to the problem of outdated agricultural technologies, machinery and equipment, land relations in the industry have not yet been fully settled, there is a lack of clarity and clarity in determining the boundaries of land plots, and a significant amount of land does not have proper legal registration. The management system in most agricultural companies requires serious improvement: there is a high need for high-quality financial management, the immediate implementation of strict control procedures to prevent embezzlement and negligence on the part of personnel, and there is a lack of capital.
Features of legal audit in agriculture
Legal auditing in agriculture has a number of significant features that reflect the heterogeneity and multifaceted nature of this industry. The reasons here are natural: the management process is connected with land resources and animals, and there is also a social factor here – a large number of organizational and legal forms of management are used in agriculture.
The majority of agricultural companies in Ukraine were founded and transferred from state to private ownership during the period of insufficient regulation of legislation
Many people were involved in such processes, and the procedures themselves were often performed without compliance with the requirements of the law and without proper documentation. Such basic conditions created the likelihood of lawsuits and demands from both former participants and persons who participated in the merger or privatization processes (former employees, their heirs, the state).
The main feature of the legal audit of the ownership of agricultural assets in Ukraine is the question of the status of property obtained as a result of the reorganization of collective agricultural enterprises (joint property) and privatization, as well as the lease of agricultural land.
In the process of a legal audit, information about shared property (or property acquired as a result of operations with shared property) should be allocated to a separate study. The legal audit of land lease rights in the case of an agricultural asset is complicated by the multitude of contracts with which such rights are formalized
During the legal audit, it is necessary to investigate, in particular:
- agricultural land lease rights and their accounting systems in land operator companies;
- the circumstances of obtaining the use or ownership of the property of the former KSP (shared property);
- the circumstances of the transfer of property in the process of privatization;
- immovable and movable property owned by target asset companies;
- immovable and movable property in the use of target asset companies;
- property owned by enterprises of the Target asset under leasing conditions;
- unfinished construction carried out by companies of the Target Asset;
- objects of intellectual property of target asset companies;
- encumbrance of the property of the target asset companies and other restrictions on the exercise of the right of ownership of the property of the target asset companies;
- retrospective studies of property issues, for example, procedures for privatization of property, procedures for subdividing former agricultural enterprises, acquisition by companies of the Target asset of property at auctions, auctions, etc.
Lawyers of ICC Bondar have the necessary knowledge and experience of conducting legal audits of agricultural enterprises.
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