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Protection of Economic Society Participants’ Rights in case of loss of Corporate Control

Student: Bobrova Mariya

Supervisor: Olga. S Erahtina

Faculty: Faculty of Social Sciences and Humanities (Perm)

Educational Programme: Legal Support and Protection of Business (Master)

Year of Graduation: 2017

Corporate control - the ability of the participant to influence the activities of the business community, the decisions made. The possibility of corporate control is directly related to the ownership of shares or shares in the authorized capital and their size. Limited liability companies and joint-stock companies have one significant difference: the authorized capital of the LLC is divided into shares, and the AO shares. Hence the differences in legal instruments that provide participants in business societies with the opportunity to exercise corporate control. Ownership of shares or shares carries a risk of their loss (reduction) for various reasons, which are not always legal. The main reasons for the loss of corporate control include a decrease in the share (number of shares) of a participant in a business company, non-compliance with legislation during the convening and holding of a general meeting of shareholders (shareholders), seizure of shares, pledge of shares, and others.  Legislation provides for ways to restore corporate control, which are aimed at the return of lost shares or shares. The study considers the following methods: vindication, restitution, recognition of the right to share, the concept of the restoration of corporate control. These methods are widely used in judicial practice and allow the participant to restore corporate control. In this final qualifying work, an analysis of the application of existing methods of restoring corporate control was carried out. Their main advantages and problems of their realization are indicated.

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