Redemption of a Share of a Participant in a Limited Liability Company: Limits of Corporate Capabilities, Equivalence, Balance of Interests

With this article, the author continues the cycle of comparative studies on corporate law, posing and offering for discussion current issues of the theory and practice of corporate legal relations that develop in LLCs in connection with determining the value of a participant’s share when it is bought out by the company. Termination of membership in a limited liability company by redemption of a share and qualification of the resulting corporate relations with determination of the specifics of their legal nature, protection and recognition of the interests of subjects of corporate relations is one of the pressing problems of modern corporate law. Its discussion raises general questions about the nature of the right to a share, its legal regime in the system of property, obligatory and corporate legal relations, showing the features of corporate participation and management in a limited liability company. In Russian law, the established regulation lags behind the real picture of the development of corporate relations in many ways, encouraging the growth of corporate conflicts and wars. A negative factor can also be considered the fact that modern Russian corporate law does not verify legislative approaches to the qualification of abuse of corporate rights. Issues of proportionality in the redemption of a share continue to be in the spotlight, but the optimal legal form for their resolution has not yet been found. Foreign experience of legal systems for the development of corporate relations in a limited liability company demonstrates an extensive empirical base, the development of which could contribute to the development of rational approaches in Russian corporate law on the turnover of shares of participants in a limited liability company.