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Article 174: Consequences of a violation by a representative or organ of a legal person of the conditions for the exercise of the power or interests of the legal person represented or interests of the legal person

📅 Updated: 30.09.2026

1. If a person ' s power to perform a transaction is limited by a contract or by a provision on the affiliation or representation of a legal person or by a power acting on behalf of a legal person without the power of attorney the body of the legal person is limited by the constituent documents of the legal person or by other instruments regulating its activities, as compared to the power of attorney, the law e/ How they can be considered to be obvious from the context in which the transaction takes place and when the transaction is committed by such person or authority outside these limits, the transaction may be recognized by the court. 2. The transaction, with the exception of the claimant, is not valid in the claim of the person in whose interest the restrictions are imposed unless it is proved that the other party to the transaction knew or ought to have known about the restrictions. A representative or acting on behalf of a legal person without the authority of the organ of the legal person, to the detriment of the interests of the legal person represented or in the interest of the legal person, may be recognized with the home of an invalid legal person represented or sued and, in cases provided for by law, of an action brought on their behalf by another person or other authority if the other party the transaction knew, or should have known, the apparent damage to the person represented or to the legal entity, or there were circumstances that indicated a conspiracy or other joint action The representative or organ of the legal person and the other party to the transaction to the detriment of the interests of the legal person represented or in the interest of the legal person.