Success in litigation concerning withdrawal of a shareholder from the company

News / 02.03.2021

Attorneys and legal advisors from our Law Firm again successfully concluded litigation for the Client who was brought to court by his business partner (majority shareholder) seeking to exclude our client from the limited liability company. The Court of Appeals upheld all the arguments presented by the lawyers of our Law Firm and dismissed the appeal lodged by the majority shareholder.  

In course of the litigation, the plaintiff claimed that the conflict existing between the partners for a long time made it difficult for the company to operate and that the defendant (a minority shareholder) abused his corporate rights by conducting frequent inspections and by appealing resolutions adopted during meetings of shareholders. The majority shareholder insisted that the minority shareholder paid attention only to his particularistic interest, which apparently was reflected by his demand for regular payment of the dividend. The Court of Appeals upheld the opinion presented by the Court of the first instance stating that in this case there were no important reasons justifying exclusion of the minority shareholder from the company. Furthermore, the Court emphasised that the sole fact that the shareholder has appealed resolutions passed by meetings of shareholders does not provide justification for excluding him from the company as, indeed, the decisions issued in these cases confirmed the legitimacy of this legal protection measure available to the minority shareholder.