For the Issue of Personal Liability of Directors/Managers and Partners’/Shareholders’ in a Business Entity

Gvantsa Magradze

Abstract


The article examines the grounds for the personal liability imposition mainly under Georgian law, but also includes a brief comparative analysis of the issue. The general emphasis was made on personal responsibility grounds adaptation in practice and for that purposes here is examined supreme court decisions, on these bases reader will be capable to find a difference between the dogmatic and practical grounds for personal liability imposition. The first chapter presents the general information about discussed issue and notion of personal liability. The second chapter is devoted to explanation the concept - "the head of the corporation" to make it clear who is the subject of responsibility in the article and not to remain beyond the attention persons who do not hold the position of director but are participating in government activities and, therefore, have fiduciury duties. After short comparative analysis of personal responsibility, the Georgian Entepreneur not business law reality is further discussed. Here, the problem of determining personal libility is a problematic issue, thus a separate chapter with its sub-chapters are devoted to the issue, which explains the grounds of liability imposition in details . The real place for the approaches that is developed in science is the practice, court. The fifth chapter provides the analysis of judicial practice, where it's outlined the grounds, that were enough to held managers personaly liable.


Keywords


Corporate Law, piercing the corporate veil, good faith, duty of care, ethical principles, abusing rights.

Full Text:

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References


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