“Blur” as a Way of Dealing with Minority Shareholders

• Published in: Legal Concept = Pravovaya Paradigma 2019-07, Vol.18 (2), p.112-116
• Main Authors: Ozheredova, Vlada, Bul, Igor
• Format: Article
• Language: English
• Subjects: Corporate governance; Minority stockholders
• ISSN: 2587-8115
• DOI: 10.15688/lc.jvolsu.2019.2.18

Introduction: the issue of dilution of the minority shareholder’s share is relevant for modern Russian corporate law. This is evidenced by the lack of basic research and the emerging jurisprudence on this issue. The paper assesses the draft law, which provides protection of minority shareholders ‘shares from “blurring”, the purpose of the study is to determine what methods are common in practice, as well as to propose ways to solve the problem of blurring the share of shareholders (participants) of economic companies. Methods: the methodological basis of this study is a set of methods of scientific knowledge, among which the main place is occupied by methods of analysis and comparative law. Results: the Work is a reasonable position of the authors, supported by specific simulated situations that reveal the entire essential component of the mechanism of blurring the shareholder’s share in the economic society. Such questions as: concept of blur of a share, specificity of this phenomenon, and distinctive features are revealed. Conclusions: the study identified options for majority (large) shareholders in relation to minority shareholders on the issue of dilution of the share, and infringement of the rights of minority shareholders in the field of corporate governance.