Corporate disputes
Corporate law is a very broad term. And disputes associated with it can arise in a variety of situations. As a rule, however, these are disagreements between the people who founded the company together — and whose opinions later diverge.Such a situation is unpleasant, since the partners then have to concentrate on each other's legal battles instead of doing business.
In order to continue to devote your time to business, it is better to leave these unpleasant (and often legally complicated) matters to a lawyer. And what is most often solved in this case?
One of the frequent cases is assessment of the validity of the general meeting. At the general meeting, the shareholders decide on the most important matters of the company. Individual decisions are put to a vote. And the overrated companion is not always satisfied with the result. In this case, they must immediately submit the so-called protest and follow it up with a lawsuit. Everything must be filed on time and carefully justified. Preferably with reference to the decision of the Supreme Court, which by its decisions governs the procedure of the lower courts.
Another common problem is the so-called Right to information. In fact, the shareholder has the right, both at the general meeting and outside it, to request information about the company, to consult its documents of the company and to check the data contained in the documents submitted. I mean, maybe ask for a review of all contracts over the last timethrough which the company sold or bought its properties. Or contracts that involved a particular value. It is thus a powerful means for each of the partners to have an adequate overview of the company, even if they do not participate in its daily activities and decision-making. Sometimes a request for information is used as a means of protecting the rights of a shareholder, other times a request for information is abused as a tool of pressure against the company or another (usually majority) partner. When the company does not comply with the request, the court again decides. And here, too, there are a number of decisions where the Supreme Court has considered which information should be released and which no longer. This boundary is good to know — or at least estimate, because it is not always completely clear.
In the event that information reaches the partner (either by the described request or in another way), it is necessary to assess it - whether everything that happened or is happening in the company is in accordance with the law. Thus, execute legal audit. Such activity has its place, in particular, if one of the partners suspects that the other partner, or another person, has harmed the company. A typical situation occurs when the former management of the company leaves (or is dismissed) and the new management finds out in what condition the company was handed over to him.
The investigation described then often results in conclusions that the former management committed an illegal act that caused harm to the company — for which the relevant persons are then responsible. It may be about unprofitable sale or purchase of property, unreasonable rewards, suspicious transactions with no economic sense and many other variations on the export of assets. Was the damage done? In what amount? Who specifically is responsible for it? Isn't everything already out of date? Would it be better to file a lawsuit, or a straight criminal notice? Or maybe both at the same time? All of this (and more) needs to be considered before any concrete steps are taken.
Compensation can be requested from other persons as well. Typically, they are members of the supervisory board if they have been established by the company. The damage may not only be caused by the person acting on behalf of the company (for example, in the case of an LLC), but also by the person who is supposed to supervise it. Even neglect of such supervision may result in liability for damage.
Membership in the body of a company (and in general of any legal entity — that is, for example, associations and other, even non-business legal entities) brings with it a whole range of obligations. If a person is elected, appointed or otherwise called to such a body, he must perform this function with the necessary loyalty and with the necessary knowledge and diligence. Whether this is the care of a proper housekeeper Able, everyone must evaluate themselves after their admission to the post. If he is not capable of such care, he risks liability for damage caused by not being “enough” to do his job.
This is even more pronounced in the case of commercial corporations. Typically in a limited liability company. Here in accordance with the law, he acts carefully and with the necessary knowledge, who could reasonably have assumed, in good faith, that he was acting in an informed manner and in the defensible interest of the business corporation. Of course, there are also exceptions to this rule and provisions that complement it.
Damages are far from the only sanction a member of the authority may face. In the event that a member of the statutory body of a business corporation (i.e., for example, an executive) repeatedly or seriously violates his duties, the court may exclude from serving as a member of the statutory body of any commercial corporation for up to three years. In the case of exercising the function of a member of a statutory body despite the established prohibition, such a person is threatened with expulsion from office for up to 10 years. To virtually eliminate him from the business. Quite separate (and very extensive) is the “chapter” of responsibility within criminal law. The Criminal Code knows many crimes that a member of the body can commit. And often very easily.
There is no need for a companion to be safe.”owner”, respectively. “co-owner” of the company. If, by means of its influence in that society, it exerts a decisive influence on its conduct to its detriment, it must compensate for that injury.. Again, with exceptions. At the same time, the partner is at risk of exclusion from the company due to violation of his obligations. In some cases, he can leave the company unilaterally.
Whatever the dispute is related to the running of a business corporation, here too it is true that The strategy needs to be very well thought out. Disagreements of companions can easily turn into a mass of intertwined disputes, from which only a long and very difficult path can lead. Therefore, at each moment it is necessary to make a good estimate of your position and the likely development. Thus, inKnow if it is better to act or launch an offensive action. Or combine both. This is what a lawyer can do best.t.