The article by the leading expert of the Control Department of the President of the Russian Federation, NII KPU expert Sergey Lutsenko, “The Institute of Fiducia as a Tool for Healing in Corporate Governance” in the journal Economic Strategies (No. 8, 2018) is commended by the Ministry of Labor and Social Protection of the Russian Federation.

The article analyzes the fiduciary principles that allow to mitigate the conflict of interests between management bodies and the owners of the company. The author considers the fiduciary institute as one of the ways to solve an agency problem or a “principal-agent” problem. The imposition of fiduciary duties on management (management, board of directors) allows evaluating the contribution of the management body to the result of the company’s activities, identifying the wrongful actions of the directorate (obtaining personal rent, and making obviously unprofitable transactions).

Read the full article in Expert Library NII KPU.