Business Judgment Doctrine in Ukrainian Corporate Law

Abstract

The article examines topical issues of applying the principle of non-interference of the court in business decisions when resolving corporate disputes. The relevance of the study in the context of martial law is emphasized, since ensuring the rights of participants in corporate relations and manage¬ment of corporate entities is one of the priorities for further cooperation with the member states of the European Union. It analyzes contemporary approaches to understanding the essence of the Business Judgment doctrine and outlines the court’s position on this issue. It examines the development of judicial practice regarding the application of the Business Judgment Rule and the prospects for its formation in relation to this category of cases. It has been established that the Business Judgment Rule doctrine, or the principle of non-interference by the court in business decisions, means that the court does not interfere in the economic activities of a company, does not replace its management, and cannot evaluate business decisions in terms of effectiveness. Attention is focused on current trends in the development of judicial practice on the application of the Business Judgment Rule doctrine regarding the recognition of such a doctrine and the court’s position on the legality of applying business decisions. It is concluded that the value of implementing the Business Judgment Rule doctrine lies in the fact that its application contributes to the unity of judicial practice as a requirement of European integration and is a means of protection against unlawful (improper) review of decisions of management bodies and officials of corporate-type legal entities, which are particularly important during martial law in Ukraine.