Legal regulation of transactions with shares
In the authorised capital of business companies
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A limited liability company is one of the most widespread organizational and legal forms of doing business in Russia. In practice, situations related to assignment of a share (part of a share) in the authorised capital of a limited liability company arise quite often. Due to a number of advantages the transfer of a share in the charter capital is the most effective way to sell the business as compared to the sale of the company as a property complex. For example, transfer of a share does not require reissuance of licenses for special activities, which cannot be avoided in the event of sale of ...
A limited liability company is one of the most widespread organizational and legal forms of doing business in Russia. In practice, situations related to assignment of a share (part of a share) in the authorised capital of a limited liability company arise quite often. Due to a number of advantages the transfer of a share in the charter capital is the most effective way to sell the business as compared to the sale of the company as a property complex. For example, transfer of a share does not require reissuance of licenses for special activities, which cannot be avoided in the event of sale of the company; sale of shares in charter capital is not subject to value added tax; the period of sale of business through transfer of shares may be much shorter than the period of sale of the company.Despite the high practical importance of issues related to transactions with shares in charter capital, this legal phenomenon remains one of the most unexplored.
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