The Influence of Corporate Governance Principles on the Protection of Bondholder Rights and the Role of Bondholders’ Meeting
DOI:
https://doi.org/10.60131/jlaw.1.2026.11882Keywords:
Principles of ¬Corporate Governance; Bond indenture; Covenant; Default; Enforcement of bondholder rights; Debt restructuring; Insolvency framework.Abstract
The article examines the influence of OECD principles of corporate governance on the protection of bondholders' rights and discusses the role of bondholders' meeting as additional corporate governance mechanism that facilitates the effective enforcement of those rights. Minimum legal requirements and bond indenture, as contractual protection instrument may be insufficient to ensure adequate protection of bondholder's interests. The close integration of bondholders into the corporate governance system, along with their active engagement through bondholders’ meetings, significantly enhances the effectiveness of protection mechanisms. Moreover, stable and reliable environment, established through the implementation of corporate governance principles constitutes a necessary foundation for the full protection of bondholders’ rights.
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