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 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:

• 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