Reasonable Entrepreneurial Risk: Behavioural Criteria for Corporate Managers

Date

2021

Advisors

Journal Title

Journal ISSN

ISSN

2312-3605

DOI

Volume Title

Publisher

Russian Law Journal

Type

Article

Peer reviewed

Yes

Abstract

This paper discusses the essence of the entrepreneurial risk, ethical and legal standards, which must be adhered to by the head of a commercial organisation. In the Russian legislation, there is debate concerning the boundaries of the responsibilities of the corporate manager. Existing literature doesn’t contain many studies about the norms on the responsibility of persons authorised to act on behalf of a legal entity because it is new for Russian civil legislation, which shows the novelty of this study. We identify problematic aspects that arise both in the doctrine and judicial practice regarding the determination of the criteria of good faith and reasonable behaviour of the head of the corporation. Our study examines the legal nature of entrepreneurial risk and how it affects the formation of managerial decisions. As a result, we propose a basic model of the criteria for the good behaviour of a corporate manager within a reasonable entrepreneurial risk.

Description

open access journal

Keywords

entrepreneurial risk, business risk, corporate governance, corporate conflict, good faith, reasonableness, Corporate Law, Civil Law, Russia

Citation

Sosnovskikh, S. and Cherkasova, O. (2021) Reasonable Entrepreneurial Risk: Behavioural Criteria for Corporate Managers. Russian Law Journal, 9(1), pp.58–80.

Rights

Research Institute

Centre for Enterprise and Innovation (CEI)