Major Transactions of Business Companies

The main aim of the present research is to discuss the most important problems of the current legislation. In accordance with the aim of the present study the following issues are addressed: approaches of the legislative body to the concept of major transactions institute; the authority of bodies of the company in the approval procedure of major transactions; the approval procedure of major transactions of business companies and consequences of non-compliance of the provided rules. Based on this research the following conclusions were made: major transactions are transaction or several interrelated transactions associated with the acquisition, alienation or possibility of direct or indirect alienation of assets whose value comprises twenty-five or more percent of book value of the company’s assets estimated on the basis of the data of financial report over the last reporting period, excluding transactions concluded in the process of the usual economic activity of the company being transactions stipulated by rational economic causes, not differing in object from analogical transactions concluded on repeated occasion by the company or its direct competitors. The approval procedure of major transactions of the joint-stock company and limited liability company upon closer analysis has a range of fundamental dissimilarities: pursuant to the joint-stock company approval procedure it is necessary to complete two stages while law on limited liability companies does not contain provisions on estimation of the market value of the asset. The approach to the possibility of the major transactions approval by the board of directors differs as well.