ISSUES OF APPLYING THE EXPLOITATION CENTER CRITERIA TO THE PERSONAL LAW OF A LEGAL ENTITY

Abstract

The article examines the “exploitation center” criterion used in international private law to determine a legal entity’s personal law and analyzes its usage features and practical significance. The purpose of the study is to assess the effectiveness of this criterion by identifying its advantages, disadvantages, and place in the legislation of different countries. In the context of a global economy, determining the national affiliation of legal entities is crucial for ensuring economic and administrative control over states. The problem is that the operation center criterion, in terms of certainty and stability, creates difficulties, which limits its application. During the research, comparative legal and logical methods were used. The article indicates that this criterion is primarily applied in the legislation of developing countries as a tool for monitoring the activities of legal entities and protecting the national economy. At the same time, it has shortcomings such as difficulties in establishing the main place of activity of a legal entity and the lack of stability due to the variability of this indicator. As a rule, the “exploitation center” criterion is used as an optional (additional) criterion and has secondary significance compared to the inclusion or settlement criteria. In conclusion, a proposal was put forward to introduce this criterion as a supplement to the Civil Code of the Republic of Uzbekistan. The research results have practical significance for improving legislation in the field of international private law, in particular, in matters of defining the personal law of legal entities. The proposed approach can be used to bring Uzbek legislation in line with international standards and protect the economic interests of developing countries. Furthermore, this research can serve as a valuable resource for lawyers, legislators, and practitioners.