Distinction between the status of the members and the ownership of the shares in the company

Sergejs Aleksejevs

Research output: Contribution to conferenceAbstractpeer-review

Abstract

A member of a capital company is a person entered in the register of members. The share shall give the participant the right to participate in the management of the company. In practice, situations often arise where the owner of the shares never becomes a member of a capital company. The aim of the work is to identify and evaluate the aspects to exercise the rights of the owner of the capital shares and the restrictive mechanisms. Analytical and comparative methods have been used in the development of the study. The informative basis for research work is national law, case law and the laws of the individual Member States of the European Union. The member of the limited liability company exercises his rights at the meetings of the participants, and the participant has the right to make decisions without convening the meeting of the participants. However, what rights are there for the owner of the capital to the acquisition of the status of a member of a capital company, what legal consequences are created by that status, how such a person can exercise his rights and enjoy the protection of legal mechanisms. This issue has not been explored so far and requires a separate insight into this issue. 1. The current mechanism does not ensure that the owner of the shares can become a member of a capital company. 2. The owner of the shares does not always enjoy legal protection for its investment in capital. 3. Not always the capital company shall continue to develop as a member of the company by exercising its pre-emption rights. 4. The commercial law provides for a more detailed description of the extent to which the shares may be obtained by the owner before he becomes a member of a capital company.
Original languageEnglish
Pages14
Publication statusPublished - 24 Mar 2021
EventRSU Research week 2021: PLACES - Rīga, Latvia
Duration: 25 Mar 202125 Mar 2021
https://rw2021.rsu.lv/conferences/places

Conference

ConferenceRSU Research week 2021: PLACES
Country/TerritoryLatvia
CityRīga
Period25/03/2125/03/21
Internet address

Field of Science

  • 5.5 Law

Publication Type

  • 3.4. Other publications in conference proceedings (including local)

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