‘The courts have changed their approach to claims for the exclusion of a member from a limited liability company. How the practice is developing.’
📄 The journal Arbitration Practice (No. 4, April 2026) has published an article by Ksenia Stepanishcheva, Co-Head of the Corporate Practice at the law firm 'Kovalev, Tugushi & Partners', and Amir Sabitov, a Junior Associate at the firm.
The article offers practical guidance and addresses the following issues:
📌 This article reflects new trends in judicial practice, in particular: cases of a member’s exclusion, including that of a majority member, for causing damage to the company; disputes concerning a member’s establishment of a parallel business involving the transfer of employees, clients and contracts to a ‘mirror’ company; the exclusion of two members at the suit of a third member following the prolonged withdrawal of funds from the company and the subsequent establishment of a parallel business; and other interesting cases from judicial practice.
📎 The full text of the article is available via the link: https://www.ktaplaw.ru/tpost/juyf244z91-sudi-izmenili-podhod-k-iskam-ob-isklyuch
📄 The journal Arbitration Practice (No. 4, April 2026) has published an article by Ksenia Stepanishcheva, Co-Head of the Corporate Practice at the law firm 'Kovalev, Tugushi & Partners', and Amir Sabitov, a Junior Associate at the firm.
The article offers practical guidance and addresses the following issues:
- In what circumstances do the courts exclude a member from a limited liability company (LLC) for unfair conduct?
- When do damage to the company, the withdrawal of assets and transactions with affiliated parties constitute sufficient grounds for exclusion?
- Under what conditions can the establishment of a parallel or competing business lead to the exclusion of a member?
- Why does the existence of a corporate conflict no longer in itself mean that a claim will be dismissed?
📌 This article reflects new trends in judicial practice, in particular: cases of a member’s exclusion, including that of a majority member, for causing damage to the company; disputes concerning a member’s establishment of a parallel business involving the transfer of employees, clients and contracts to a ‘mirror’ company; the exclusion of two members at the suit of a third member following the prolonged withdrawal of funds from the company and the subsequent establishment of a parallel business; and other interesting cases from judicial practice.
📎 The full text of the article is available via the link: https://www.ktaplaw.ru/tpost/juyf244z91-sudi-izmenili-podhod-k-iskam-ob-isklyuch