FIDUCIARY DUTIES IN THE MANAGEMENT OF THE CORPORATION AND THEIR APPLICATION IN UZBEKISTAN

Abstract

At present, comprehensive reforms are being implemented to improve civil law in our country. This can also be seen in the rules of corporate law. In particular, one of the reforms is related to the fiduciary duties of the managers of the legal entity. In corporate law, the fiduciary duties of the governing body of a legal entity are one of central issues. Proper and effective management of a legal entity is largely determined by the extent to which the fiduciary duties of the governing bodies are regulated and adhered to. Failure to comply with fiduciary duties is also the basis for liability of the governing body to the legal entity. Anglo-American corporate law states that the fiduciary duties of the managers of a corporation consist of duty of due care, duty of loyalty, and duty of good faith. The corporate law of the Russian Federation provides that the governing bodies of a legal entity must act in good faith and reasonably in the interests of the legal entity, and violation of these fiduciary duties is the basis of their responsibility to the legal entity. This paper analyzes the fiduciary duties of the management bodies of legal entities based on the legislation and judicial practice of the United States and the Russian Federation and discusses the prospects for applying and improving these duties in the corporate law of the Republic of Uzbekistan.