Apportionment of the Burden of Proof of Good Faith and Reasonableness of the Director's Behavior in the Process of Resolution of Disputes Connected with Imposing of Liability
Law and Economics, Vol. 2, 2012
12 Pages Posted: 12 Apr 2013
Date Written: 2012
The article is devoted to the one of the most complicated issues of the process of ascertainment of the grounds of the director’s liability for striking an unprofitable bargain on behalf of the company – the issue of imposition of a duty to prove good faith and reasonableness of his behavior. We analyze the essential provisions of the legislation setting forth the director’s liability and the proposals of its development in order to suggest recommendations of apportionment of the burden of proof.
Note: Downloadable document is in Russian.
Keywords: liability, the director of the company, burden of proof, good faith and reasonableness, acting in the company’s interest
JEL Classification: K22
Suggested Citation: Suggested Citation