Protection of the Rights of Participants of Business Entities in Case of Loss of Corporate Control

Stocks and shares in the authorized capital of business entity are a valuable corporate asset, referred in corporate practice as corporate control. The imperfection of the corporate legislation in conjunction with the unlawful actions of the participants of business entity and third parties provide opportunities for committing offenses, the result of which is the loss of corporate control. The loss of corporate control entails the emergence of not only material losses, but also the absence of the possibility of making corporate decisions. The interest of the participant of business entity is to return the lost property and corporate rights. In this regard, the institute of the protection of the rights of participants of business entities in case of loss of corporate control acquires special significance. The analysis of judicial practice confirms the inconsistency of universal legal methods of protection, the ineffectiveness of which is expressed in the impossibility of the most complete satisfaction of the requirements for the restoration of corporate rights and the return of lost property. The objective difficulties of protecting the rights of persons who have lost their corporate assets beyond their will contributed to the development of civil legislation in terms of developing and introducing new special legal methods of protection, among which the most important was the legal method of protection in the form of restoration of corporate control.