ADDITIONAL MONETARY REWARD AS AN TOOL TO INCENTIVE THE ARBITRATION MANAGER TO CONDUCT AN EFFICIENT AUCTION

Abstract

The article examines the importance of additional monetary remuneration of the arbitration manager as an important factor in ensuring the independence, transparency and efficiency of auctions in bankruptcy procedures. The receiver plays a key role in conducting auctions for the sale of the debtor's property, which requires a high level of professionalism and impartiality. However, there is a negative practice when arbitration managers for the purpose of obtaining financial benefits begin to cooperate with specific participants in the bankruptcy case and, unfortunately, such cooperation is not always aimed at achieving the main goal of bankruptcy – obtaining the greatest possible satisfaction of creditors' demands. In most cases, such a negative practice is due to the fact that arbitration administrators in bankruptcy cases under normal conditions lack the motivation to act independently and impartially in order to repay as many creditors' claims as possible. This problem found its expression in the activity of arbitration administrators at the stages of preparation and conducting of the auction. As it turns out, in practice, in most cases, the arbitration manager does not in any way contribute to the active sale of property from public auctions, relying on the guarantees of the law regarding the receipt of remuneration as a result of its sale, regardless of active actions. The author of the article analyzes the influence of the method of obtaining the amount of the additional reward on the quality of the work of the arbitration manager in preparing and conducting the auction in bankruptcy. In the mentioned article, the author provides a legal assessment of the norms of the current legislation, which guarantee the right of the arbitration manager to receive additional monetary compensation. The article analyzes the situations when the arbitration administrator may be entitled to additional remuneration in accordance with the requirements of the Code. The author of the article analyzes the influence of the size of the additional monetary reward and the method of its appointment on the quality of the work of the arbitration manager in preparing and conducting the auction in bankruptcy. The work has significant practical interest for lawyers, arbitration managers, judges and other interested participants in bankruptcy procedures in Ukraine. The article emphasizes the need to develop new approaches to the payment of additional monetary compensation to the arbitration manager in order to stimulate him to develop professional ethics, impartiality and independence. The author analyzed the legal approaches of the countries of the European Union and the United States of America to the procedure and conditions of payment of additional remuneration to the arbitration administrator with the aim of using these approaches in domestic legislation. In the mentioned article, the author proposes mechanisms for creating a balance of interests between arbitration administrators and creditors when exercising the arbitration administrator's right to additional remuneration. Analysis of recent research and publications: To date, the topic of additional monetary compensation of the arbitration manager, as a guarantee of an independent auction, is not widely researched in the Ukrainian scientific literature. However, some aspects of this topic were highlighted in the works of scientists dealing with issues of legal regulation of bankruptcy procedures and the role of arbitration managers: O. Belyanevich, O. Vaskovskyi, L. Grabovan, V. Jun, Y. Kabenok, B. Polyakov, V. Radzivilyuk, A. Butyrskyi, L. Nikolenko.