For the Issue of the Company Director’s Liability
Keywords:
Internal and External Responsibility, Indirect/De facto Director, Straight (So-called Vis-à-vis) Responsibility, Group Damage, Conflict of Interests, Person Influential on the Director, Objective Responsibility, Managerial misconduct, General Supervision,Abstract
Legal regulation of the Company Director’s Responsibility is the concern not only of developed countries but also of less economically advanced states because they are trying to create an effective and stable business environment, successfully lodge on an international market. In this process, the issue of the company manager’s liability is very important. There is a rich practice of the US court about this concern, for example, the Supreme Court of Delaware divided the management duties into three parts: diligence, loyalty, and good faith.[1] According to the Principles of Corporate Governance of the American Institute of Law, the director should fulfill the obligations of the corporation in good faith; in the best interests of the corporation and with due diligence.
In general, the awareness of a decision has a significant impact on the responsibility of the company director. During decision making, it is important to make a thorough examination of facts, get consultations, hear different opinions, learn the market situation, share the information by the directors and etc.[2]
It should be noted that in European countries the overall standards of the director’s responsibility are mainly similar. However, diverse trends are identified due to the state's economy, size, and development level of the markets, which requires assessment and legal analysis.[1] Maisuradze D., Corporate-legal Defensive Measures During the Reorganization of Capitalist Societies (Comparative-legal Research Preferably on the Example of Delaware State and Georgian Corporate Law), Dissertation Thesis to Earn the Academic Degree of Doctor of Law, Ivane Javakhishvili Tbilisi State University, Faculty of Law, Tbilisi, 2014, 22 (in Georgian).
[2] Maisuradze D., For Explanation of Business Judgment Rule, Journal of Law, №1-2, Tbilisi, 2010, 116, (in Georgian).
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