Duty of Loyalty in Companies’ Corporate Relationships

  • Piotr Pinior

Abstract

The duty of loyalty in companies’ relationships is a matter of great importance taking into account the different position of the authorities and shareholders of the company, the interest of the company and individual interest of shareholders, not mentioning the influence on the stakeholders.
The main characteristic of the duty of loyalty in corporate company relationships concerning the directors is a special care of interest of the company and acting in a way enabling the maximum use of the possibilities of the company (corporate opportunity). Shareholders’ duty of loyalty should be defined as the obligation to execute corporate rights (esp. voting rights) in accordance with the good practice and avoiding conflict of interests. Being involved in a company cannot be considered only from the perspective of profits but also from the perspective of responsibility, that is why the question of loyalty finds interesting in the literature and jurisdiction concerning corporate law.

References

1. S. Girvin, S. Frisby, A. Hudson, Charlesworth’s Company Law, 18th Ed. London, 2010
2. D. French, S. Mayson, C. Ryan, Company Law. 27th Ed. Oxford, 2010
3. H. J. Priester, D. Mayer, Munich Handbook of Company Law, 3. Vol. Private limited company. (Münchener Handbuch des Gesellschaftsrechts. B. 3. Gesellschaft mit beschränkter Haftung.) 3rd Ed. München 2009
4. M. Hoffman – Becking, Munich Handbook of Company Law, 4. Vol. Public limited company. (Münchener Handbuch des Gesellschaftsrechts. B. 4. Aktiengesellschaft.) 3rd Ed. München 2007
5. H. Fleischer, W. Goette, Munich Handbook of Company Law, 3. Vol. Private limited company. (Münchener Kommentar zum Gesetz betreffend die Gesellschaft mit beschränkter Haftung.) 2. Vol. München 2012
6. P. Pinior, Shareholders’ supervision in private limited companies (Nadzór wspólników w spółce z ograniczoną odpowiedzialnością). Warszawa 2013
Published
2019-06-11
Section
Articles