Principle of good faith in corporate relations

Abstract

For every action there is a counteraction, so says Newton's Third Law. This rule is applicable not only in physical science, but also in legal science. Legal laws give the subjects of legal relations knowledge of what rights and obligations they have, and how the former should be exercised, and the latter to fulfill, deviation from the rules established by law is called abuse of right. From "Economic Analysis of Law" by A.G. Karapetov we know that subjects have two trajectories of behavior – to act honestly or dishonestly. The probability of choosing the second trajectory increases if a party to a contract believes that it will not meet its counterparty again. In corporate relations (not always having the obligatory-legal nature characteristic of civil relations) the participants of the corporation are on the same side – on the side of the corporation and between them there are still conflicts of interests in the struggle for profit, this is the specificity of the refraction of the principle of good faith in corporate relations. Judicial practice knows numerous and diverse ways of unfair behavior of corporate participants, which are constantly improving with the development of economy and law. In defining the concept of "abuse of right" researchers have divided into two camps – those who believe that only lawful acts should be recognized as abuse of right, and those who believe that only offenses can be recognized as abuse of right. The article will consider the general concept of good faith, the concept of good faith in corporate relations, the correlation of bad faith behavior and abuse of right, the impact of the interest of the corporation on the principle of good faith and the composition of the offense in corporate relations.