Invalidity of Transactions: Problems of the Right to Challenge the Transaction

Graduation work reveals the existing problems of challenging the debtor's transactions in bankruptcy proceedings, as well as transactions in corporate relations. The author’s notion of invalidity of transactions was given in the work, criteria for classifying transactions as invalid transactions were highlighted. Analyzing the existing problems of contesting transactions in bankruptcy proceedings and in the corporate sphere, it was revealed that subjects of civil legal relations are faced with gaps in legislation regarding the conceptual apparatus, which has an important role in contesting transactions, and the procedure for contesting transactions in these areas, violation of rights and limiting the rights of bona fide persons by provisions legislation to challenge transactions. Analyzing the problems of contesting the transactions of the debtor in the bankruptcy procedure, particular attention was paid to the gap in the legislation regarding the procedure for contesting transactions made by the debtor after the adoption of the application for declaring the debtor bankrupt; violation of the legitimate interests of bona fide persons in contesting the debtor's suspicious transactions. Considering the procedure for challenging transactions in the corporate sphere, problems were identified proving the counterparty’s awareness of the conclusion of an interested party transaction or a major transaction. Moreover, analyzing the contractual structure of a repurchase, one of the most important problems is the violation of the legitimate interests of the seller under the repurchase agreement. The paper offers recommendations on improving the institution of invalidity of transactions, including the need to introduce amendments to the legislation regarding the procedure for contesting transactions and protecting bona fide persons.