Grounds for invalidation of decisions of the general meeting of shareholders
Under the law one of the grounds for invalidation of the decision of the general meeting of shareholders of a company is a violation of the law in the convening and holding of the general meeting.
In judicial practice some courts invalidated such decisions if there were any violations of the law that occurred during the convocation and holding of the general meeting of shareholders. Other courts invalidated such decisions only if there were egregious violations, and only courts were to decide if such violations were really egregious or not, creating a situation where during the same cases, radically different court decisions were passed.
The Supreme Court of Ukraine decided that the obligatory reasons for invalidation of the decision of the general meeting are taking decisions without a quorum, taking decisions on issues that were not included in the agenda and decisions to change the charter capital of the company when members are not informed.
If there are other violations of the law committed during the convocation or holding the general meeting, the decision of the general meeting of shareholders may be invalidated only if the results of this decision infringe the member’s rights. That is, if during the convening and holding of the general meeting of shareholders there was a violation of the law, but these violations could not influence the decision, there is no reason for the invalidation of such a decision.
In order to avoid situations when decisions of the general meeting of shareholders are held invalid, lawyers of Colares are always ready to provide you with professional legal assistance in supporting the general meeting of shareholders, and represent your interests in court to appeal the decision of the general meeting of shareholders.