THE DISTRICT COURT ALLOWED THE APPOINTMENT OF THE DIRECTOR OF THE AWARD SOCIETY TO HIMSELF

In particular, the cassation noted (case no. A60-30243/22) that when considering disputes on claims of companies to recover losses from directors in the form of bonuses awarded by the latter in favor of themselves, the courts are obliged to establish the existence of harm caused to companies by such actions of directors.

Thus, the court noted that in order to recover the claimed losses from the defendant, the plaintiff must prove not only the illegality of the defendant's behavior, but also the presence of his guilt, the fact of causing losses and the presence of a causal relationship, while in this case the courts established only the fact of illegal behavior of the company's director. But at the same time, they did not include in the subject of proof of the present dispute, did not establish, did not investigate and did not evaluate the fact whether losses to society were actually caused as a result of such behavior.

That is, even if the procedure for appointing the director of the award is violated, the absence of harm to the controlled company is the basis for refusing to recover damages.

In addition, the cassation noted that the courts need to investigate the marketability of the salary conditions of such directors and the proportionality of the bonuses they assign in favor of themselves to the salary level of other employees of the company.