Peculiarities of Protection of the Right to Participate in Management of Business Entity

The article analyzes efficiency of national legislation regarding protection of the right to participate in the management of business entity. Author has researched peculiarities of invalidation of general meeting's resolutions of business entity. The article covers protection of the right to participate in the management of business entity through invalidation of major transactions and interested-party transactions, the procedure for conclusion of which has been violated, has been studied. Author demonstrated setbacks of legal regulation of the right to take part in management of a business entity and presented his own suggestions for improvement of legislation and judicial practice. It has been noted, that despite it being generally impossible to invalidate general meeting's resolution on matters of other governing body's competence, there are certain exceptions. General meetings are not allowed to make decisions on matters of other governing body's competence in public limited companies, and, in case it is stated otherwise in charter, in private limited companies - thus, their resolutions can be annulled on abovementioned basis. The author came to a conclusion, that in order to invalidate substantial or interested-party transactions, plaintiff has to prove the fact, that third party knew that the procedure for concluding such transaction has not been met. The article also covers the legal nature of the right to participate in management of business entity. The author suggests, that in order to prevent abuse of law, Ukrainian legislation has to include number of instances, which transform this right into shareholder's obligation. Such conclusion is based upon analysis of foreign legislative provisions. Based on the analysis of judicial practice and legislative provisions, it can be concluded that although national legislator has been taking the right steps so far, to provide efficiency of legal regulation that exists in foreign countries, there are number of instances, that demand closer attention of both scientists and legal practitioners