CIVIL (CORPORATE) LEGAL CONSEQUENCES ARISING IN CONNECTION WITH THE DEATH OF A SHAREHOLDER IN A LIMITED LIABILITY COMPANY

Abstract

The powers of a participant in the management of a company depend on his share in the authorized fund of the company. In the event of the death of a participant-physical person, the share belonging to him shall be included in the inheritance. However, the heir does not receive the status of a participant of a company. This article considers the transfer of the share of a deceased participant of a limited liability company to his heirs, various aspects of the transfer of rights and obligations of the participant at the transfer of the share, and different approaches and problems in this regard. On the basis of examples, the differences of civil legal relations arising in the case of the death of a participant of a company with one participant and two or more participants are shown. The significance of the charter of a company and the free will of other participants at the transfer of a share, as well as the processes and terms established by the law are analyzed. Based on the conditions defined by the Articles of Association, the cases of the heir obtaining the status of a participant of the company were analyzed in three different ways. Legislative documents determining the process and procedure of share transfer to the heir were compared with the legislation of foreign countries, and proposals were made to simplify these processes. Disputes that arise between heirs and participants and are considered in court are also studied, and the author’s personal attitude toward court documents is expressed.