Legal positions in corporate disputes systematized by the Supreme Court

The Supreme Court analyzed the most interesting decisions in cases of corporate disputes, corporate rights and securities entered in the Unified State Register of Judicial Decisions during 2020.

The results of the analysis are combined into a review, which is posted on the portal "Judicial Power of Ukraine".

As in any other legal relationship where there is a material interest, conflict situations often arise between participants in corporate relations, as well as in the process of securities circulation, which cannot always be resolved by mutual agreement. Disputes that could not be resolved out of court are referred to the economic court.

It is noted that in the process of resolving a corporate dispute in court, imperfections and gaps in legislative regulation are revealed. And under such conditions, court decisions are able to protect violated corporate rights, which also affects the development of the economy as a whole.

Legal opinions and positions are systematized in the overview into the following sections:

- procedural features of considering cases in corporate disputes, corporate rights: jurisdiction, issues of an appropriate and effective way to protect corporate rights, derivative claims, securing a claim, evidence and other aspects of considering a corporate dispute;

- protection of certain types of corporate rights: protection of a participant's rights to manage a legal entity, an increase in the authorized capital of an LLC, receiving part of the profit (dividends), conducting an audit, obtaining information about the activities of a legal entity;

- the practice of resolving disputes regarding securities: jurisdiction, proper method of protection, invalidation of a securities sale and purchase agreement, the obligation to perform certain actions to fulfill the terms of the securities sale and purchase agreement, determination of the parties in a dispute on the interpretation of a donation agreement for shares, promissory note, bonds ...

The Supreme Court is confident that the conclusions obtained as a result of such an analysis will contribute to the correction of errors made in the consideration of cases, the correct and uniform application by the economic courts of the norms of the current legislation of Ukraine. The review can also be useful for lawyers when forming a legal position in cases of corporate disputes, corporate rights and securities.