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A shareholder loses corporate control. The ways to restore it

Shareholders of any economic company have corporate control over the entity. Such control takes the form of the possibility to influence certain business decisions, to affect the forming of the legal entity’s intentions. The volume of corporate control depends on the volume of rights of a shareholder, and can therefore be changed. Company shareholders, wishing to redistribute the volume of corporate control to their benefit, sometimes act dishonestly and purchase shares or stock of the company illegally. Redistribution of control may occur in many diverse cases, for example – when voting shares of the company are pledged or assigned to trust management. In those cases, some shareholders may lose control over the company.

The article by the specialists of the Law Firm "YUST" – Associate Yulia Karpova and Associate’s Assistant Natalia Lazareva – tells:

  • How to get the shares, the ownership of which was discontinued, if the charter capital has been significantly increased;
  • What to do if the shares or stock were lost due to the purchasers’ dishonest conduct;
  • How to restore corporate control in the event of reorganization of the company.

The full version of the publication is available at the “Arbitration Practice” magazine (No. 5, 2013) –

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