Liability of company executives for damages: myth or reality
Liability of company executives for damages: myth or reality
The issue of holding persons managing business entities liable for property damage remains one of the most controversial topics in contemporary Ukrainian corporate law doctrine. Despite clear statutory provisions establishing the obligation of managers to compensate the company for losses resulting from the improper performance of their duties, the practical implementation of these legal mechanisms encounters numerous procedural and substantive obstacles.
An analysis of court practice demonstrates a significant gap between the declared possibility of recovering damages and the actual outcomes of relevant cases considered by the courts. This situation arises from both imperfect legislative regulation and the inherent difficulties of proving corporate disputes, which calls into question the effectiveness of existing legal instruments for protecting the property interests of companies and their participants.
Read more in the article by EVERLEGAL lawyers for the the Legal Practice (Yurydychna Praktyka) publishing house at the link.
In focus:
- Regulatory and legal basis for the liability of managers of business entities;
- Judicial practice;
- Typology of grounds for liability of managers in court practice; Conclusions;
- Ways to improve legal regulation in Ukraine.
Our experts: Maryna Borysenko, Senior Associate at EVERLEGAL, and Oleksandra Grachova, Junior Associate at EVERLEGAL.
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