Preferential Purchase of an LLC Share: A Shift to Flexible Rules
Since September 1st, LLC participants have significantly more freedom in regulating the preemptive right to purchase a share, up to and including its complete cancellation. A material on this change in legislation has been published on the analytical portal Pravo.ru.

Experts agree that this is a long-awaited and positive change that will remove excessive bureaucracy and make the share market more flexible and investment-attractive. At the same time, new risks are emerging that corporate relations participants need to consider.

  

“In some cases, the new opportunities may be used to the detriment of individual participants. For example, a majority shareholder, when agreeing on a corporate agreement and the charter of an LLC, may impose on a minority shareholder with a weak negotiating position the need to exclude his preemptive right,” notes KKMP Senior Associate Andrey Lipin.

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