Withdrawal of a shareholder from a limited liability company

A limited liability company is a type of company in which, due to a generally small number of shareholders and their close association (family undertakings or companies of people who otherwise also know each other etc.), personal contents are also emphasized in addition to equity components. These contents are particularly reflected in the regulation of shareholding transfers, adopting decisions at meetings and expulsions of shareholders form the company. In practice, disputes often arise between shareholders and can reach a point where further collaboration or participation in a company no longer makes sense or doesn’t comply with interests of a particular shareholder. What possibilities does the shareholder have who no longer wants to participate in a limited liability company? One possibility, recognized by the Companies Act (ZGD-1), is the withdrawal of a shareholder from the limited liability company. The law does not know or recognize an unrestricted possibility of withdrawal. We know two forms of withdrawal from a company: contractual or judicial withdrawal from a company.

A limited liability company is a type of company in which, due to a generally small number of shareholders and their close association (family undertakings or companies of people who otherwise also know each other etc.), personal contents are also emphasized in addition to equity components. These contents are particularly reflected in the regulation of shareholding transfers, adopting decisions at meetings and expulsions of shareholders form the company. In practice, disputes often arise between shareholders and can reach a point where further collaboration or participation in a company no longer makes sense or doesn’t comply with interests of a particular shareholder. What possibilities does the shareholder have who no longer wants to participate in a limited liability company? One possibility, recognized by the Companies Act (ZGD-1), is the withdrawal of a shareholder from the limited liability company. The law does not know or recognize an unrestricted possibility of withdrawal. We know two forms of withdrawal from a company: contractual or judicial withdrawal from a company.