Charles Explorer logo
🇬🇧

Conflict of interest from the point of view of theories of juristic persons

Publication at Faculty of Law |
2017

Abstract

The contribution is based on the idea that a conflict of interest between a juristic person as represented and its representative arises by legal transactions (legal conduct) of juristic person. The manner in which a juristic person is able to make legal conduct is determined by law.

The purpose of the contribution is to answer the question how is the construction of legal conduct of juristic persons related to the conflicts of interest in which it occurs? However, the legal conduct of juristic person can be theoretically explained both in accordance with the theory of fiction and the organic theory. Therefore, both theories and the consequences to which their consistent application would lead to are analyzed.

If an organic theory were to be taken literally, a conflict of interest could never have happened because the organ acting on behalf of the juristic person would never be able to pursue interests other than the interests of the juristic person and vice versa could never follow theirs. The fact that a conflict of interest between a juristic person as represented and its organ (agent) often occurs indicates that the theory of fiction appears to be more correct because the will of a particular individual is only "considered" as the intellect and will of a juristic person without has "realistically" argued that this is the intelect and the will of that juristic person, which explains why there may occur a conflict of interest.