Corporate disputes

Corporate disputes arising out of violation of the interests of shareholders and participants of commercial companies are often resolved for a long time and require a large number of forces. Without qualified legal assistance, it is often impossible to extinguish the conflict, which leads to delays in proceedings. In the end, a long trial has a negative impact on the activities of the enterprise, causing deterioration of its work and decrease in profits.

Corporate disputes: concept

This category of cases is allocated by the legislation of the Russian Federation in a separate special Chapter. Such conflicts have their own characteristics, and their settlement must comply with certain rules established by law. There was no such thing as corporate disputes earlier in the civil law, but with the passage of time and the development of the economy, it had to be introduced. As stated in article 225.1. this type includes disputes related to :

1. With the emergence of organizations, termination of its activities or change organizationally-legal forms.
2. With the right to ownership of shares, shares of the company, as well as all related requirements and actions.
3. With requirements of founders, shareholders.
4. With the activities of the management bodies of a company (Directors, members, shareholders, etc.).
5. With issue of shares and other securities.
6. Other disputes listed in the law.

The emergence of corporate disputes: how to avoid them

Based on the existing practice, it can be clearly stated that any legal entity established for both business and any other will face problems in the legal field. Even if the company complies with all the requirements of the law, there may be a person who will try to appeal and challenge any action through the arbitration court.

Such claims deprive the company of:

• time;
• profit;
• clients.

That is why it is important already in the process of establishing the company to consider and provide all possible risks, to establish options for overcoming difficult situations, to determine the methods of judicial and extrajudicial protection. The most appropriate option for this is to hire legal professionals. This method has recently been quite popular due to the ability to save on regular legal officers.

Features of solving corporate disputes in arbitration court

Corporate disputes are dealt with in the arbitration court and are considered to be the most complex cases requiring consideration of many nuances and careful preparation.

If a corporate dispute involves an issue or offering of shares, the procedure for dealing with it has its own peculiarities, since the number of claims filed against one legal entity can reach several thousand. Separate consideration of each of them requires too much time, therefore, provides for the filing of a claim by one person at the request of the remaining victims who had corporate relations with the defendant.

Also, the court carefully examines the case materials to exclude the seizure of rights to a legal entity by unscrupulous shareholders, often hiding the fact of appeal to the judiciary. In the end, the person in respect of which is trial, deprived of the opportunity to participate in the consideration of a court case and learn about the rendered court decision too late.

Therefore, at the moment there are special provisions that the Arbitral Tribunal must comply with when considering corporate disputes:

1. To begin trial after studying of reliability and correctness of the submitted documents.
2. Post on its official website information about the beginning of the case and the main stages of its consideration.

In addition, the judicial authorities have the right to obligate the shareholder who filed the claim to notify the company that a production case has been instituted against it, as well as to inform interested persons about the course of its consideration. In case of improper performance of the duties assigned to the plaintiff, penalties are imposed.

In particularly complex situations, the court may initiate criminal proceedings against persons involved in the conflict in a corporate case. This measure allows bringing the case to an end and bringing the guilty party to justice.

I am a lawyer specializing in solving corporate conflicts, ready to settle the dispute in arbitration without going beyond the legal field.