Legal security of companies : what happens ,in practice , with the GMS after the exclusion of a shareholder
Legal security of companies : what happens ,in practice , with the GMS after the exclusion of a shareholder
The exclusion of a shareholder from a company is a complex legal procedure, which is for partnerships and LLCs regulated under the Law no. 31/1990, but not for joint-stock companies. This measure represents a serious sanction, applicable in exceptional situations, when a shareholder causes significant harm to the company or violates its statutory obligations. The exclusion of a shareholder in a LLC is not an arbitrary internal act, but the result of a court decision. The Law no. 31/1990 provides that the exclusion is ruled by the court, and the excluded shareholder remains liable towards third parties until the court decision becomes final.