Abstract:

The present paper is aimed at identifying legal barriers to effective organization of a corporation’s crisis management within pre-bankruptcy period. At the moment, there is a lack of legal regulation of interaction between corporate management bodies in case when temporary financial difficulties can be overcome due to efficient management policy. Reformation of bankruptcy legislation reflects search for the best model of distribution of rights and obligations within a corporation at the stage of bankruptcy predication. However, the conducted study shows that the proposed model is not logical enough. The analysis of the recently introduced innovations reveals that bankruptcy legislation still does not take into account the subtleties of corporate legislation and the specifics of the position of sole executive body (or the "head of the debtor" in the terminology of the Bankruptcy Act) in the corporate management system. The authors discover insufficiently clear definition of the subjects of responsibility for late submission of bankruptcy petitions. Besides the reforms leave out of account the difference in the issues of convening an extraordinary general meeting in different types of corporations. The research covers the issues of protective mechanisms encouraging a corporation’s managers to adopt proactive bailout measures.