Kozina E.A. On the question of cause of the legal issues associated with inheriting shares of a limited liability corporation (OOO in Russia)

Abstract: The subject of this research is the court practice in regulating the transfer of shares of a limited liability corporation in case of inheritance. The author gives a thorough examination to the problems of inheritance of a portion of the shares in order to identify the cause that he sees not only in the fact that these legal relations are at the borderline of regulation of two (corporate and inheritance) legal branches, but also in the legal nature of shares in a limited liability corporation. Based on a detailed analysis of the normative base, court decisions, and theoretical research, the author questions the validity of the formed understanding of the essence of this object of civil legal relations, which does not take into account its complex nature. Based on the presumption of invisibility of rights that form the portion in the authorizes capital, the author makes a conclusion that the civil legal regime of this object should not allow transferring of portion of the rights to the inheritor or other third parties. The author also proposes to exclude the norms from the legislation that allow inheritance of a portion of the stake, since they deform the complex nature of the share and create prerequisites for acquisition of property right by the inheritor separate from corporate rights that the heir may not have due to presence of various conditions.  

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