Court practice regarding the expulsion of shareholders
Not long ago, the Supreme Court of the Russian Federation (SC RF) issued 2 rulings on the expulsion of a shareholder from a corporate entity which are contrary to the prevailing trends in recent court practice.
One of the teams in our Dispute Resolution practice - Partner Evgeny Oreshin and Junior Associate Ivan Tebenev - outlined the cases in which the law allows for the exclusion of a participant from a corporation, how the relevant rules are applied by the courts, and what signals the Supreme Court is sending to lower instances with the two abovementioned rulings.
As trial lawyers, our colleagues also note that in court disputes, including those involving the exclusion of participants from corporations, much depends not only on the legal positions of the Supreme Court of the Russian Federation and court practice but also on the specific circumstances of the case and the careful collection of evidence. To paraphrase a well-known quote, all unhappy corporations are unhappy in their own way.
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