Expulsion of a Company Member: Problems of Legal Regulation

This graduate paper is aimed at identifying and analysing the gaps and problems of legal regulation of the expulsion of a company member, also in the context of corporate deadlocks. The main objectives of this paper are: a)consideration of the concept of termination of company participation, its types and definition of the role of expulsion of a company member among the ways of such termination; b)definition of the concept and legal nature of the expulsion of a company member, disclosure of its general characteristics, evaluation of the novelty of the Civil Code on the extension of the said institute to non-public joint-stock companies; c)studying of the expulson of a member procedure, its grounds, as well as the legal consequences for the member and the company; d)studying the excpulsion of a company member in the context of "dedlocks": consideration of the concept and ways of resolving "dedlocks", determining the role of the excpulsion of a company member in “deadlocks” solution. The object of the study is the legal relationship related to the exclusion of the participant from the economic society. The paper consists of an introduction, three chapters, seven paragraphs, four subparagraphs and a bibliography. Based on the reasearch, the following conclusions were made: a) the excpulsion of a company member has dual nature - represent both a sanction and a special measure of corporate rights protection; b) to improve the effectiveness of the application of the expulsion we proposed a number of changes, such as: synchronization of legislation to expel a company member; limitation of the application of the excpulsion of a company member in the context of corporate conflicts; formalization of criteria for expulsion of a member and determine the value of the share to be paid; introduction of the possibility of a preliminary decision to exclude a member at a general members' meeting.