STRUCTURAL AND FUNCTIONAL CHARACTERISTICS OF A FIDUCIARY LEGAL STRUCTURE: A GENERAL THEORETICAL APPROACH

Abstract

This article examines current issues related to the structural and functional characteristics of the legal fiduciary structure under Ukrainian civil law. The essence, characteristics, and functions of legal structures are defined. Definitions of «legal structure», «fiduciary relationship», «trust», «fiduciary transaction» and «fiduciary duties» are provided. The article analyzes the historical aspects of the development of fiduciary relationships and the legal regulation of the possibility of a manager acquiring a right of trust ownership over the property received for management based on a property management agreement. The article examines the fiduciary legal structure of the right of trust ownership as a means of securing the fulfillment of an obligation.

It is emphasized that the right of trust ownership over the property received for management arises on the basis of a property management agreement, in contrast to trust ownership as a means of securing the fulfillment of an obligation, the basis for which is the agreement establishing the trust.

It is analyzed that the right of trust, enshrined in national legislation, is a property right, as it provides for the transfer of property title to the property from the founder of the trust (the trustee) and, accordingly, the acquisition by the trustee of a «target» right of ownership, which is subject to return as the purpose of the agreement will be achieved.

The legally enshrined fiduciary duties of officials of the executive body and supervisory board of a legal entity are defined.

It is concluded that legal constructs facilitate the understanding and study of certain legal phenomena and summarize a wide range of legal practice. It is established that trust ownership represents a special type of property right regulated by the provisions of the Civil Code of Ukraine, legislation in the field of securities management, property management in housing construction and real estate transactions, etc. Attention is focused on the amendments made to the Civil Code of Ukraine in 2019, which established the possibility of transferring property under a trust not only for management but also to secure the fulfillment of obligations under a loan agreement. It is concluded that the enshrinement of fiduciary duties of care and loyalty in the Civil Code of Ukraine is an important and progressive step in the process of reforming relevant legal relations. However, the amendments introduced do not yet provide complete and sufficient legal regulation, but rather form the basis for further improvements to legislation in this area.