Transfer of a Share in a Charter Capital of a Company

Research studies reveal the lack of consistency of determining the legal nature of a share in a charter capital of a limited liability company and the share transfer. However, recent changes in the legislation and court practice indicate an attempt to unify the existing concepts of the legal nature of the share and to identify its real essence. The aim of this bachelor paper is to develop the most appropriate concept of the legal nature of the share and its transfer in compliance with the modern corporate law as well as to analyze the legislation on limited liability companies in order to identify problematic aspects of the share transfer procedure and evaluate the legislation amendments in 2016. The author was concentrated on the following tasks: 1) to determine the legal nature of the share in the charter capital of a limited liability company; 2) to allocate the rights to be transferred to the acquirer; 3) to determine the legal nature of the share transfer; 4) to consider the grounds of the share transfer to the participants of the company and third parties; 5) to analyze the legislation amendments governing the share transfer procedure and their results. This research figured out that the share has a corporate nature and constitutes a single complex of both property, non-property rights and duties. Furthermore, relying on the indicated concept the author revealed the specific nature of the share transfer. Besides this paper claimed that corporate rights can be divided into ‘rights from the share’ and ‘rights to share’, that are integral parts of rights certified by share. Focusing on existing grounds of the share transfer, recommendations for improving the legal technique were suggested. In addition, the new role of a notary in the share transfer process, changes in the moment of transfer and planned share accounting by registrars were estimated.