Success in a court case to exclude a shareholder from a limited liability company.

The Law Firm’s advocates and attorneys have once again successfully concluded the case of a Client against whom the majority shareholder brought an action for exclusion from a limited liability company. The Court of Appeals fully upheld the arguments of the Law Firm’s lawyers and dismissed the appeal, which had been filed by the majority shareholder.

In the course of the proceedings, the plaintiff argued that there had been a conflict between the partners for a long time, which hinders the company’s business, as well as that the defendant (the minority shareholder), by conducting frequent inspections and challenging resolutions passed at shareholders’ meetings, abuses its corporate rights. In the majority shareholder’s opinion, the minority shareholder was only looking out for his particular interests, as manifested by his demand for regular dividend payments. The Court of Appeals upheld the position of the Court of First Instance that in the case at hand there were no valid reasons that would justify the exclusion of the minority shareholder from the company. In addition, the Court stressed that a prerequisite for the exclusion of a shareholder from the company could also not be the fact of challenging resolutions passed at shareholders’ meetings, since the rulings in these cases confirmed the legitimacy of the minority shareholder’s use of this legal remedy.