The importance of good faith in corporate relations

good faith is an indispensable principle in the fulfillment of corporate obligations, implying the need for shareholders, administrators, partners and parties involved to act ethically and transparently in relation to the responsibilities and duties attributed to themselves in corporate relations. This principle should be observed as a requirement to protect the rights and interests of the parties, both prior and during and after the closure of the corporate bond.

during the pre-contractual period, that is, throughout negotiations for the establishment of bonds or even the rules applicable to relationships, good faith must be observed by the parties, as the establishment will be established Guidelines for relations between the partners, in addition to the rights and obligations to be observed throughout the business activity.

In a society, it is common for each part to hold a particular view of the business, expected to occur divergences, which, if there are no rules directed to its resolution, may lead to serious damage. A partnership agreement based on loyalty and honesty, therefore, is essential to prevent conflict or, in order to better conduct them, in order to preserve business activity.

During the period of the corporate bond, the applicability of good faith is demonstrated in the fulfillment of the obligations and duties of the parties involved, in decision making to achieve the corporate purpose and in mutual collaboration among the partners. For example, it is possible to verify the grounds of good faith when the transparent rendering of accounts, respect for the rights of minority partners and the adoption of good corporate governance practices.

Similarly, the imposition of good faith after the end of the corporate relationship is essential, as the parties must remain committed to transparency and honesty in their business relations, even after the end of the contract. Guaranteeing compliance with the principles of good faith and transparency is, in this sense, fundamental to ensure the legal certainty of the parties involved, as well as to prevent any conflicts that may arise after the closing of the corporate bond.