INVOLVEMENT OF THE MANAGEMENT BOARD IN PRIVATE LAW

PRE-BANKRUPTCY RELATIONS

Abstract

The extraordinary administration procedure is considered a type of bankruptcy procedure. The authors question whether the high degree of authorisation granted to the administrative authority  in extraordinary administration procedures is justified. The Agrokor company is an example of how the operations of a private company can maintain the economic stability of the entire state economy and vice versa, how its untimely bankruptcy can cause the collapse of the entire system (social policy). It is precisely the social and economic consequences of eventual bankruptcy that legitimize the high degree of interference of the administrative authority in the procedure of extraordinary administration. The characteristics of private law and public law procedures are presented through the prism of the extraordinary administration procedure. A parallel is drawn between the procedure of extraordinary administration and administrative procedures of confiscation and nationalization.It was concluded that the concession of the extraordinary administration has elements of both bankruptcy proceedings and administrative ones, which makes the powers granted to the administrative authority justified.