+30 210 72 31 630
Tel.
info@elo.gr
Email
KOLONAKI: 21 Omirou
GLYFADA: 27 Lazaraki

CORPORATE DISPUTES

Although every company starts out on the best of terms, it is quite common for intense disputes between the partners to arise in the course of a company’s activities, which often end up in court.

Corporate disputes are best resolved amicably in order to avoid any consequences for the company’s progress. However, this is not always possible due to unresolved disputes between partners or shareholders.

Our attorneys with their extensive experience in corporate matters and disputes will be with you with combativeness, seriousness and efficiency to represent you.

RIGHTS OF MINORITY SHAREHOLDERS OF A LIMITED LIABILITY COMPANY

The basic principle governing the operation of a joint stock company is that the majority i.e. the shareholders who own 50% of the company’s capital and 1 more share, can decide on almost all matters of the company, most importantly the election of the company’s Board of Directors.

Because of this majority principle, many times the minority shareholders find themselves isolated from the management of the company and see the Board of Directors taking actions that they feel are detrimental to the company and by extension the shareholders and as a minority they feel like mere spectators.

We set out below, the rights of the minority shareholders, elaborating on those that are most essential:

1/ Right of the minority of shareholders to extraordinary control of the company.

α) Right of the 5% minority of shareholders to a legal audit.

b/ Right of a minority of 20% of the shareholders to a substantive audit.

If the application is granted, the court shall assign the extraordinary audit to at least one chartered accountant or audit firm or, if the company is small, to a Class A tax accountant.

2/ Right of the minority of the shareholders of the joint-stock company holding 1/20 of the paid-up share capital to request the Board of Directors to pursue the company’s claims against the members of the Board of Directors who have damaged the company in breach of their duties.

3/ Right of the minority of the shareholders of the Company to request the Board of Directors to provide the General Meeting with the specific information requested on the Company’s affairs, insofar as it is relevant to the items on the agenda.

4/ Right of the minority shareholders of 1/20th to request the Board of Directors to convene an Extraordinary General Meeting.

5/ Right of 1/20th of the paid-up capital to request an open vote on an item or items on the agenda.

CORPORATE ACTION AGAINST MEMBERS OF THE BOARD OF DIRECTORS OF A PUBLIC LIMITED COMPANY

The law provides for a special system of liability of the members of the board of directors of any joint stock company when by their acts or even omissions they cause damage to the company in the exercise of their management duties. This liability exists only vis-à-vis the company and not vis-à-vis the shareholders. Therefore, if the company with its organs considers that the management carried out by board members is defective and causes damage to the company, the company can bring a corporate action against the culpable board members.