OBLIGATION TO ACT FOR THE BENEFIT OF A LEGAL ENTITY FROM GOOD FAITH AND REASONABLY AS THE MAIN COMPONENT OF THE LEGAL STATUS OF ENTITIES PERFORMING THE FUNCTIONS OF ENTREPRENEURIAL COMPANY AGENCIES AS SUBJECTS OF CIVIL LIABILITY

Authors

  • Valentyna Zhornokui

DOI:

https://doi.org/10.51989/NUL.2022.3.4

Keywords:

legal entity, entrepreneurial company, fairness, reasonableness, behalf.

Abstract

The author of the article has analyzed the current state of understanding the essence of the obligation to act for the benefit of a legal entity from good faith and reasonably as the main component of the legal status of entities performing the functions of entrepreneurial company agencies as subjects of civil liability. It has been proved that only having a clear idea about the range of corporate obligations of the members of entrepreneurial company agencies, one can talk about the legality (illegality) of their behavior and systematize the norms about legal liability. At the same time, the nature of legal relationships between the company and the members of its agencies directly affects the type of liability applied to the offender. It is the assessment of the consequences of unconscientious and unreasonable behavior of the members of such agencies that is crucial for third parties and for the entire civil turnover. It has been concluded that the legislation on legal entities contains numerous norms regulating the liability of the members of entrepreneurial company agencies for failure to perform (improper performance) of their duties. However, such norms are contained in different regulatory legal acts focused on certain types of companies and differently regulate the same relationships. Particular attention has been paid to the inconsistency of the legislator in establishing the status of entrepreneurial company agencies. Although they are not an independent subject of civil law under civil legislation, in some cases they may be subjects of civil liability. However, those agencies are not able to bear any responsibility because they do not have ringfenced assets. Such responsibility is borne by individuals – their members. While determining the parties of corporate relations that arise in regard to the performance of functions of entrepreneurial company agencies, we should talk about the relationships between such a company and the entities performing the functions of its agencies.

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Published

2022-09-15

Issue

Section

TOPICAL ISSUES OF PRIVATE LAW