Taking risky actions as a basis for prosecuting the officials of the business company
On the basis of the conducted analysis, it has been concluded that the responsibility of the officials of entrepreneurial companies in modern law is studied in the context of corporate governance as one of the elements of the management and control system of companies and one of the means of ensurin...
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| Format: | Article |
| Language: | English |
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Kharkiv National University of Internal Affairs
2022-09-01
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| Series: | Law and Safety |
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| Online Access: | http://pb.univd.edu.ua/index.php/PB/article/view/646 |
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| author | V. H. Zhornokui |
| author_facet | V. H. Zhornokui |
| author_sort | V. H. Zhornokui |
| collection | DOAJ |
| description | On the basis of the conducted analysis, it has been concluded that the responsibility of the officials of entrepreneurial companies in modern law is studied in the context of corporate governance as one of the elements of the management and control system of companies and one of the means of ensuring their responsible management. At the same time, the issue of clear delimitation of powers between the bodies of an entrepreneurial company is closely related to the issue of liability of their officials to the company itself, since their liability always arises as a result of violation of the duties assigned to a particular body (to one or another official).
It is the specific definition of the rights and obligations of persons performing the functions of the bodies of a business company, and their activities on behalf of the company in good faith and reasonably and without exceeding their powers that forms the basis for the stability of property and non-property corporate relations within the corporate governance of a business company.
The essence of risky actions as grounds for bringing to responsibility of officials of an entrepreneurial company has been clarified. It has been concluded that, given the essence of the risky activities of an entrepreneurial company aimed at making a profit and its further distribution among the participants, the actions (inaction) of the participants of relations within the relevant legal entity contain risks of both economic and legal content. Such risks should be classified into justified and unjustified, which are associated with the further possibility of bringing to justice the persons guilty of causing damage to the participant of corporate legal relations. It has been emphasized that it is the justified nature of entrepreneurial risk in the actions of persons performing the functions of the bodies of an entrepreneurial company, and their reasonable, conscientious, with due care and prudence activity, as well as taking all measures for the proper performance of duties and prevention of adverse legal consequences for the company, allows o talk about their release from liability for damages.
It has been noted that the legal mechanism of civil liability of officials to the business company for actions that are risky and may cause damage to the company needs to be improved in domestic law. |
| format | Article |
| id | doaj-art-ffbfcd9d18a3465b8cc0c0823a99e96b |
| institution | Kabale University |
| issn | 1727-1584 2617-2933 |
| language | English |
| publishDate | 2022-09-01 |
| publisher | Kharkiv National University of Internal Affairs |
| record_format | Article |
| series | Law and Safety |
| spelling | doaj-art-ffbfcd9d18a3465b8cc0c0823a99e96b2025-02-02T15:56:47ZengKharkiv National University of Internal AffairsLaw and Safety1727-15842617-29332022-09-01863708010.32631/pb.2022.3.06646Taking risky actions as a basis for prosecuting the officials of the business companyV. H. Zhornokui0Kharkiv National University of Internal AffairsOn the basis of the conducted analysis, it has been concluded that the responsibility of the officials of entrepreneurial companies in modern law is studied in the context of corporate governance as one of the elements of the management and control system of companies and one of the means of ensuring their responsible management. At the same time, the issue of clear delimitation of powers between the bodies of an entrepreneurial company is closely related to the issue of liability of their officials to the company itself, since their liability always arises as a result of violation of the duties assigned to a particular body (to one or another official). It is the specific definition of the rights and obligations of persons performing the functions of the bodies of a business company, and their activities on behalf of the company in good faith and reasonably and without exceeding their powers that forms the basis for the stability of property and non-property corporate relations within the corporate governance of a business company. The essence of risky actions as grounds for bringing to responsibility of officials of an entrepreneurial company has been clarified. It has been concluded that, given the essence of the risky activities of an entrepreneurial company aimed at making a profit and its further distribution among the participants, the actions (inaction) of the participants of relations within the relevant legal entity contain risks of both economic and legal content. Such risks should be classified into justified and unjustified, which are associated with the further possibility of bringing to justice the persons guilty of causing damage to the participant of corporate legal relations. It has been emphasized that it is the justified nature of entrepreneurial risk in the actions of persons performing the functions of the bodies of an entrepreneurial company, and their reasonable, conscientious, with due care and prudence activity, as well as taking all measures for the proper performance of duties and prevention of adverse legal consequences for the company, allows o talk about their release from liability for damages. It has been noted that the legal mechanism of civil liability of officials to the business company for actions that are risky and may cause damage to the company needs to be improved in domestic law.http://pb.univd.edu.ua/index.php/PB/article/view/646corporate legal relationslegal entitybusiness companyresponsibilityofficialrisk. |
| spellingShingle | V. H. Zhornokui Taking risky actions as a basis for prosecuting the officials of the business company Law and Safety corporate legal relations legal entity business company responsibility official risk. |
| title | Taking risky actions as a basis for prosecuting the officials of the business company |
| title_full | Taking risky actions as a basis for prosecuting the officials of the business company |
| title_fullStr | Taking risky actions as a basis for prosecuting the officials of the business company |
| title_full_unstemmed | Taking risky actions as a basis for prosecuting the officials of the business company |
| title_short | Taking risky actions as a basis for prosecuting the officials of the business company |
| title_sort | taking risky actions as a basis for prosecuting the officials of the business company |
| topic | corporate legal relations legal entity business company responsibility official risk. |
| url | http://pb.univd.edu.ua/index.php/PB/article/view/646 |
| work_keys_str_mv | AT vhzhornokui takingriskyactionsasabasisforprosecutingtheofficialsofthebusinesscompany |