Shareholders disputes

The law firm successfully defended the client's interests in a case relating to the forced redemption of shares. 

In this case, a dispute arose between two shareholders, one of whom demanded the forced redemption of shares. 

While examining this case, the court referred to 2.213(1) of the Civil Code of the Republic of Lithuania that deals with the cases when shareholders of a legal entity are not unable to exercise their rights properly due to the actions of another shareholder in the legal entity and it cannot reasonably be expected that such actions will end in the future, they may bring an action before a court claiming that a shareholder in a legal person whose actions prevent the proper exercise of their rights, would buy shares from them. 

Thus, a forced redemption of shares, as an exclusive means of protection of the rights of a shareholder, is possible when it is established that: 

1) a shareholder who applies to a court is unable to properly exercise his or her rights as a participant of a legal person due to the illegal actions of another shareholder of a private limited company; 

2) it cannot reasonably be expected that those actions will change in the future. 

In the present case, it was necessary to determine whether the claimant could not properly exercise his rights as a shareholder as a result of the unlawful conduct of the other defendant shareholder and it could not reasonably be expected that those conduct would change in the future. 

The court, after examining the case and all relevant evidence, found that no illegal actions that prevented the other party from exercising its rights as a participant in the legal entity were made. Thus, the claims for forced redemption of shares was dismissed in this case.

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