The Supreme Court allowed joint-stock companies to buy back their shares from liquidated companies

Joint-stock companies will be able to buy back their shares from legal entities excluded from the Unified State Register (ERGUL). The price of the shares will not be lower than the market price; after the transaction, the legal entities must place the amounts on the account with a notary. Permission for this was given by the Supreme Court of the Russian Federation (SC RF).

The Judicial Collegium for Economic Disputes of the Supreme Court of the Russian Federation equated this transaction with the case in which the shareholder himself refused to participate in the company.

“The exclusion of a shareholder from the Unified State Register of Legal Entities leads to the same consequences as the withdrawal of a participant from the company in relation to corporate rights and obligations. The long-term persistence of such a situation (for example, more than ten years) violates the legitimate interests of the joint-stock company related to ensuring the possibility of continuing its activities, maintaining manageability, the need to raise capital from other persons who are ready to act as shareholders, ”it follows from the decision of the collegium of the Armed Forces of the Russian Federation (quote by Interfax).

This decision was made by the Judicial Board after reviewing the case with CJSC Firm Kartnet. The company was liquidated 15 years ago, while it owned 21,874 shares of PJSC CHIF-Kuzbass.

Polina Sobakina