Baku State University

The main characteristic of legal entities is the limited liability of the participants. Limited liability is also the main idea of the legal entity. It is the fact that the participants are not responsible for the company's debts that gives a significant boost to the economies of countries and allows capital to accumulate. However, in addition to the successful impact, it has led to large-scale abuses in these companies.

After these processes, first of all, the process of registration of legal entities, which was previously only in the form of consent, was complicated. Later, the institution of corporate liability emerged.

As a result of the development of the legal entity, there is a tendency for participants to withdraw from the current activities of the company. In this case, the abuse of current managers by the company drew attention to the responsibility of those who are part of the company's governing body and have the power to dispose of its property. [4, p.208]