The Legal Status of the Sole Executive Body in the Corporation

The aim of the present paper is: 1) determining the moment of the emergence of powers of the sole executive body; 2) determining the legal-effect of the absence of the authorized governance body’s decision of termination the director’s powers and (or) appointment of the new director for the sole executive body and the corporation; 3) determining the extent of powers of the sole executive body; 4) considering the sole executive body as a body of the corporation; 5) determining the limits of liability of the sole executive body for losses of the corporation. The paper consists of introduction, two chapters, four sections, conclusion and list of references. There are the following conclusions made on the basis of the conducted research: Firstly, the moment of the emergence of powers of the sole executive body is the decision of the authorized body of the corporation; Secondly, the director is obliged to perform the duties of the sole executive body till the authorized body makes a decision on termination of the powers of the director or on the election of the new director of the corporation; Thirdly, the scope of powers of the sole executive body depends on the legal form of the business company, economic and financial position of the corporation; Fourthly, the sole executive body is considered to be a body of the corporation, not a representative; Fifthly, in order to establish the limits of liability of the sole executive body it is necessary to formulate the basis of liability, asses the actions of the person, exercising the functions of the sole executive body, from the point of view of reasonableness and good faith; Sixthly, the sole executive body bears personal responsibility for causing damages to the corporation, if it is proved that the director did not act in the interests of the corporation or acted in bad faith and unreasonable.