Problems of the Management of Legal Entities of Private Law in Georgia

Importance of management of legal entities under
private law of which especially corporate management, as well as
looking for ways of its improvement and perfection has become
especially relevant in the twenty-first century, which was greatly
contributed to by the global economic crisis. Some states have adopted
Corporate Governance Codes; the European Union has set to work on
a series of directives the main purpose of which is an improvement of
corporate governance, provision of greater transparency and
implementation of an effective control mechanism. This process is not
yet completed, and various problematic issues associated with
management of legal persons are still being debated among
practitioner experts and scholars. Georgia is not an exception in this
regard. The article discusses the legislative gaps, and in some cases,
discrepancies having arisen in legal relationships under private law and
having caused many practical problems. This especially applies to the
management of capital companies.

Authors:

• Ketevan Kokrashvili
• Rusudan Kutateladze
• Nino Pailodze

Keywords:

• Business entities
• corporate management
• public capital management
• collective norms
• existing problems
• legal discrepancies.

References:

[1] Communication from the Commission to the European Parliament, the
Council, the Economic and Social Committee and the Committee of the
Regions Towards a Single Market Act – for a highly competitive social
market economy – COM (2010) 608final/2, pg. 27;
[2] Georgia Supreme Court “about Entrepreneurs” of law as a result of
recommendations of workshop and materials, Tbilisi, 2009, page.9;
[3] CACG Guidelines – Principles of Corporate Governance in the
Commonwealth towards global competitiveness and economic
accountability; November 1999; pg.1;
[4] The Law of Georgia "On Entrepreneurs".
[5] L. Chanturia, Corporate management and directors’ liabilities in
corporate law, Tbilisi 2006.
[6] K.Kokrashvili. Corporate Law. 2010.
[7] K.Kokrashvili. Article - The Problems of separation of management
authority of joint stock company according to Georgian legislation, theI
International Conference on “Current Problems of Law”, Tbilisi, 2010.
[8] Fourth Company Law Directive on annual accounts (Council Directive
78/660/EEC as amended by Directive 2006.
[9] German Stock Corporation Act.
[10] Norton Rose group, German corporate laws on joint stock companies,
pg.14.http://www.nortonrose.com/knowledge/publications/pdf/file25765
.pdf?lang=en-gb.
[11] Richard h. Lester, a road less traveled: investigating the outside directors
of America's corporate boards, p.20
http://repository.tamu.edu/bitstream/handle/1969/493/etd-tamu-2003B-
2003051514-Lest-1.pdf; sequence=1.