FORMATION OF SUPERVISORY BOARDS AS A BASIS FOR ASSURING THE CORPORATE MANAGEMENT QUALITY

The quality of corporate governance depends on the effectiveness of the supervisory board's performance. For this, the supervisory board must have the appropriate composition and structure, and its members must be independent from the executive body and have the necessary knowledge and experience to effectively perform their duties.The analysis of existing theoretical provisions and practical experience of ensuring the quality of corporate governance in terms of creating a supervisory board and staffing corporate management showed that insufficient attention has been paid to this issue. The procedure for selecting and appointing members of the supervisory board needs to be improved.The article substantiates the theoretical and methodological approach to ensuring the quality of corporate governance through the system of selecting members of supervisory boards and forming the system of corporate management: the procedure of forming the supervisory board and methodical support for its implementation has been developed.A feature of the proposed procedure is the step-by-step assessment of the supervisory board members: the professional competence of candidates for board members; comparative evaluation as part of the selection process of the supervisory board; establishing the level of business activity of the supervisory board members.Business activity is a comprehensive characteristic of a the supervisory board member, which reflects their efforts aimed at ensuring dynamic development, achievement of set goals, development and effectiveness of corporate governance. To evaluate business activity, it is proposed to use the characteristics of the three "Rs": basic resource; performance results; reputation of the subject. Thus, the criteria for evaluating business activity have been developed.Implementation of the proposed provisions will allow companies to form effective supervisory boards that will contribute to ensuring the quality of corporate governance. The directions of further scientific research are the development of a policy for the supervisory boards formation, scientific and methodological recommendations for regular audits of the composition and structure of the supervisory board, substantiation of approaches to training and development of supervisory board members.