The obligation of the administrator to pursue the purpose of the legal person

The modernized Сivil Сode clearly and explicitly states that while managing the company’s business, the administrator must act by choosing the path he/she considers best to achieve the goals of the legal person.

The administrator, from a legal point of view, must take into account the following in the process of managing the company:

1. the likely long-term consequences of the way he/she acts;
2. the interests of the employees of the legal entity;
3. the need to encourage the legal entity’s relationships with suppliers, customers, and other co-contractors;
4. the impact of the legal person’s activity on the community and the environment;
5. the desire to maintain a reputation that the legal person operates to high standards in its field of activity;
6. the need to treat the members of the legal person fairly.

Recommendation: Familiarize yourself with the new legal obligations of administrators.

The Сivil Сode can be accessed at the following link (art. 186).