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Ways to Resolve Deadlocks of Participants of Non-public Corporations

Student: Tiunin Aleksandr

Supervisor: Evgeny Glukhov

Faculty: Faculty of Law

Educational Programme: Jurisprudence (Bachelor)

Year of Graduation: 2020

Since Russian legislation still lacks legal institutions capable of ensuring the functioning of effective mechanisms for breaking deadlocks, the risks for any сorporation to remain permanently paralyzed due to the inability of participants to reach agreement on corporate governance issues increase. In this work the author studies the most common methods in practice for resolving deadlocks of participants in non-public corporations, namely: mechanisms for buying out shares in the authorized capital; the Institute of excluding a participant from a corporation; the Institute of forced liquidation of a corporation at the request of a participant. The object of the research is the legal relations of participants of Russian non-public corporations that arise in the process of resolving deadlocks of management bodies. The subject of the research is the norms of Russian civil law, the positions of Russian arbitration courts, and the approaches of Russian researchers to the legal institutions that provide the existing mechanisms for resolving deadlocks. This work was carried out in order to study modern approaches to resolving deadlocks of participants in non-public corporations. An additional goal was to determine the limits of acceptable use of the most stringent mechanisms for resolving deadlocks. The practical significance of the study is expressed in the possibility of using the conclusions made in the work for further improvement of civil law institutions and the development of special mechanisms for overcoming deadlocks.

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