RKKW’s Client, the majority shareholder in a limited liability company operating mainly in the trading sector, has obtained security in the commercial litigation concerning the expulsion of the shareholder from the company. Court has recognized that it is justified to suspend the exercise of the opponent’s corporate rights related to his shares.
The court has been convinced by the evidence indicating a competitive activity of the opponent and his detrimental actions to the company with possible embezzlement of the company’s assets. Both shareholders – the Client and the opponent – were members of the company’s management board and were entitled to one-person representation.
The decision of the Court is in line with jurisprudence where the courts are not afraid to grant even far-reaching securities to protect the company as an economic organism. The decision was effective and enforceable upon its issuance.
The decision of the court secured the purpose of the proceedings leading to exclusion of the shareholder. However, it was only the first step in a possibly long-standing trial.
RKKW specializes in corporate disputes, but each time the Client’s interest is the top priority, which in most cases is not based on long-term court disputes. Therefore, when there was a possibility to reach a settlement, RKKW has recommended our Client to be open to possible communication.
Ultimately, the RKKW’s Client has entered into a settlement with his trial opponent. The settlement aims to put an end to all disputes between the parties and to remain by the RKKW’s Client the only shareholder of a limited liability company on satisfactory terms. It also contains provisions beneficial to the Client regarding, i.a., prohibition of the opponent’s competitive activity.
Attorneys-at law Dariusz Kulgawczuk (Partner) and Katarzyna Półtorak (Associate) were members of the RKKW team involved in court proceedings and settlement negotiations.