DEPOSITORY ACTIVITY: SECURITIES AND COMPANY SHARES ACCOUNTING

Abstract

The article provides a comprehensive investigation into the institutional and functional development of the depository system of Ukraine, with a particular emphasis on its role as a core element of capital market infrastructure and a mechanism for strengthening corporate governance. The study highlights the historical genesis of the depository accounting system. Special attention is devoted to the introduction of depository accounting for limited liability company (LLC) shares, which represents a transformative stage in the modernization of corporate rights management, enabling the transition from traditional state registry mechanisms to an integrated digital accounting system. Empirical evidence based on statistical indicators for 2020–2024 demonstrates positive dynamics in the value of serviced assets, the increased participation of corporate issuers, and the structural dominance of government securities, reflecting both the resilience and vulnerabilities of the Ukrainian financial system in the context of wartime challenges. The research substantiates that the centralization of corporate rights accounting within the depository system enhances the protection of ownership rights, reduces the risks of unauthorized interventions, and ensures transparency of ownership structures, thereby contributing to the stability of corporate governance practices. Furthermore, the article develops an institutional model of depository activity that incorporates both functional and organizational perspectives. The findings reveal that the integration of digital services—such as remote general meetings, electronic voting, escrow mechanisms, and automated compliance monitoring—substantially improves the efficiency, accountability, and legal certainty of corporate decision-making processes. At the same time, the research identifies key challenges that accompany the ongoing transformation, including the need for technological and regulatory harmonization, expansion of authorized depository institutions, enhancement of business awareness regarding the benefits of depository accounting, and the development of a balanced tariff policy. Addressing these challenges is crucial for strengthening the resilience of Ukraine’s capital market and ensuring alignment with international standards of financial and corporate governance.