A PERSON AUTHORIZED TO MANAGE AND REPRESENT A DEBTOR COMMUNITY IN THE REGIME OF REHABILITATION

Abstract

The rights and duties of the director in entrepreneurial activities are regulated by both the 1994 and 2021 editions of the Law of Georgia “On Entrepreneurs”. The powers assigned to him/her include leadership and representation of the entrepreneurial company. The legal relations of the director often goes beyond the scope of corporate law. Accordingly, the rights and duties established by other fields of law apply to him. One of them is the law of insolvency, which provides for the director’s involvement in such a regime as the rehabilitation regime. In the paper, the role of the director is considered within the framework of the regulation of the law of insolvency, the rehabilitation regime, which is regulated by the law of insolvency. In addition to reacting to the imperatively determined action, the law obliges the director to assess the evaluable and foreseeable circumstances and to take appropriate action on it. The topic is relevant and interesting, because in addition to the civil liability towards the director, criminal liability may also be considered. In order to properly discuss the topic provided by the article, the laws on Insolvency Procedings and on Rehabilitation and Collective Satisfaction of Creditors are compared with each other. Decisions/rulings of the general courts of Georgia have been used in the paper in order to clarify the position of the court regarding the issue. And, in certain cases, the legal norms of different countries and foreign language literature are cited in the article for the purpose of making a comparison.