Representative Nature of a Sole Executive Body of a Corporation: Several Additional Arguments

Determination of a legal status of a director and other members of management bodies of a legal entity largely depends on the concepts that reveal the legal nature of these organs of governance. The organic theory views the director as an integral part of the legal entity and does not allow the application of representation norms to directors. Conversely, the representative theory suggests integrating directors and other executive officers into the paradigm of well-known institutions of civil law. The tension between these two approaches and the ongoing appeals to the organic theory prompt the author to provide additional arguments in the paper (including economiclegal, functional, and historical perspectives) in favor of the concept of representation of the governance bodies of a legal entity. The study reveals that the organic theory is insufficient to address practical issues, whereas the representative approach is not only practically applicable but also increasingly supported by domestic courts. It aligns with the tradition of continental private law and the doctrine of common law jurisdictions.

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