THEORETICAL ASPECTS OF CIVIL LIABILITY OF OFFICERS OF BODY CORPORATE MANAGEMENT

Anatoliy Kostruba ()

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Abstract: The legal personality of a legal entity is embodied in the activities of its management bodies, the purpose of which is to strive to achieve the results of business activities and meet other interests of the legal entity, its participants (founders). However, in the process of interaction between the management bodies of a legal entity, situations arise when the participants in such interaction pursue different or mutually exclusive goals, which is due to the polar desire to secure corporate interests, which leads to a corporate conflict. One of these is the construction of the legal liability of officials of the corporate governance body for the harm caused by their actions in the relevant area. In turn, fiduciary relations between a legal entity, its founders (shareholders) and officials of the relevant corporate governance body form a different legal model of interaction between them. Confidence in the integrity and goodwill of the party with whom the principal is in a relationship based on his trust does not imply that he expects irrational behavior of the attorney. Because the fiducia between participants of these relations creates higher risks of abuse, it is correct, in our opinion, to establish legal factors of not only reasonable compensation to the injured party, Theoretical aspects of civil liability of officers of body corporate management which is the institute of compensation of harm as such, but also to establish the prevention of abuse, other types of malevolent behavior increased the legal liability of officers of body corporate legal entity management by exception guilt as a condition of responsibility. In this method, the existing disparity in the legal capabilities of participants in the studied trust relationships is balanced, one of which is in a legally weak state. Thus, the principle of civil liability regardless of the fault of the delinquent becomes a reasonable balance in ensuring the interests of the legal entity and the implementation of the professional competence of the corporate governance body and its officials.

Keywords: corporate governance; corporative law; corporations; corporate liability; CIVIL LIABILITY OF BODY CORPORATE MANAGEMENT; BODY CORPORATE MANAGEMENT (search for similar items in EconPapers)
Date: 2020-10-23
New Economics Papers: this item is included in nep-law
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Published in XVІІІ Міжнародна науково-практична конференція "Законодавство про акціонерні товариства: новації та перспективи ", Vasyl Stefanyk Precarpathian National University, Oct 2020, Ivano-Frankivsk, Ukraine. pp.52-56, ⟨10.5281/zenodo.4264149⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-02995572

DOI: 10.5281/zenodo.4264149

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