Protecting Minority Investors: Issues and Development Prospects under Russian Law
https://doi.org/10.25205/2542-0410-2024-20-2-64-73
Abstract
The article considers the protection of minority investors rights in joint-stock companies and limited liability companies under Russian law. Reflecting on the legislation and caselaw, the author states that a minority investor has a sufficient level to safeguard their rights. The author states a high level of guarantees for minority shareholders, however, concludes that the use of judicial remedies in some cases imposes an additional burden of proof on minority shareholders, namely when challenging general meeting resolution or increasing authorized capital of LLC. Plus, within the current regulation the most effective tools are mainly preventive (ex-ante) related to a balance of corporate governance embracing the minority investors interests through the charter and corporate agreement.
About the Author
M. I. Temchuk
Independent Researcher
Russian Federation
Russian Federation
Maxim I. Temchuk, Independent Compliance and Legal Consultant
References
1. Davies P. Introduction to Company Law. Oxford, 2010, 320 p.
2. Shitkina I. S. Main directions of development of corporate legislation and trends in law enforcement practice. Business law [Predprinimatel’skoe pravo], 2018, no. 2, pp. 5–16. (in Russ.)
3. Gabov A. V. Exemption of a joint stock company from the obligation to provide information to a shareholder. The Law Enforcement Journal [Pravoprimenenie], 2020, no. 4, pp. 103–122. (in Russ.)
4. Dolinskaya V. V. Concept of corporate conflicts. Laws of Russia: experience, analysis, practice [Zakony Rossii: opyt, analiz, praktika], 2010, no. 6, pp. 1–12. (in Russ.)
5. Akopdzhanyan A. S. The problem of protecting the rights of minority shareholders under Russian and Anglo-American law. ECONOMY. RIGHT. SOCIETY, 2017, no. 1, pp. 47–54. (in Russ.)
6. Boyko T. S. Redemption of a minority participant’s share as a way to protect against oppression by a majority participant. Corporate law in anticipation of change: a collection of articles for the 20th anniversary of the LLC Law. Moscow, Logos publ., 2020, p. 23. (in Russ.)
7. Volodin S. N., Skiba A. V. Protection of the rights of minority shareholders during the repurchase of large blocks of shares. Currency regulation. Currency control [Valyutnoe regulirovanie. Valyutnyj kontrol’], 2017, no. 3, pp. 52–59. (in Russ.)
8. Potopalsky S. S. Protection of the rights of minority participants in a limited liability company when increasing the authorized capital. Scientific notes of the Crimean Federal University named after V. I. Vernadsky. Legal sciences [Uchenye zapiski Krymskogo federal’nogo universiteta imeni V. I. Vernadskogo. Yuridicheskie nauki], 2020, no. 4, pp. 290–299. (in Russ.)
9. Kuznetsov A. A. Corporate law in anticipation of change: a collection of articles for the 20th anniversary of the LLC Law. Moscow, 2020, pp. 13–47. (in Russ.)
Review
For citations:
Temchuk M.I. Protecting Minority Investors: Issues and Development Prospects under Russian Law. Juridical science and practice. 2024;20(2):64-73. (In Russ.) https://doi.org/10.25205/2542-0410-2024-20-2-64-73
Views:
145
Email this article 