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Reasonable Entrepreneurial Risk: Behavioural Criteria for Corporate Managers

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This paper discusses the essence of the entrepreneurial risk, ethical and legal standards, which must be adhered to by the head of a commercial organisation. In the Russian legislation, there is debate concerning the boundaries of the responsibilities of the corporate manager. Existing literature doesn't contain many studies about the norms on the responsibility of persons authorised to act on behalf of a legal entity because it is new for Russian civil legislation, which shows the novelty of this study. We identify problematic aspects that arise both in the doctrine and judicial practice regarding the determination of the criteria of good faith and reasonable behaviour of the head of the corporation. Our study examines the legal nature of entrepreneurial risk and how it affects the formation of managerial decisions. As a result, we propose a basic model of the criteria for the good behaviour of a corporate manager within a reasonable entrepreneurial risk.

About the Authors

Sergey Sosnovskikh
De Montfort University
United Kingdom

Lecturer in Business and Management, De Montfort University

The Gateway, Leicester, LE1 9BH, United Kingdom

Oxana Cherkasova
Ural Federal University
Russian Federation

Senior Lecturer in Civil Law, Ural Federal University

51 Lenin Av., Yekaterinburg, 620075, Russia


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For citation:

Sosnovskikh S., Cherkasova O. Reasonable Entrepreneurial Risk: Behavioural Criteria for Corporate Managers. Russian Law Journal. 2021;9(1):58-80.

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ISSN 2309-8678 (Print)
ISSN 2312-3605 (Online)