Monitor Prawniczy

no. 22/2013

Scope of authority of the board – protection of third parties vs. protection of the company

Dominika Opalska
Abstract

In the Commercial Companies Code the legislator adopted the principle of strictly defining the representative functions, whereas different rules are effective only internally. That solution safeguards the interests of third parties. However, the interest of a company may be endangered since it is possible for its managers to abuse their powers of representation. The company may invoke only the abuse of substantive law and argue that a legal action performed by the manager is contrary to the principles of conduct in society.