LEGAL REGULATION OF RELATIONS ON SALE OF SHARES IN A LIMITED LIABILITY COMPANY: THEORY AND PRACTICE

Abstract

The transfer of a share in a limited liability company (LLC) for monetary compensation, as an object of civil legal relations, possesses a number of specific features. However, due to the fact that the provisions of the Civil Code do not directly regulate corporate relations, certain misunderstandings may arise in the process of share transfer for payment. In some cases, such misunderstandings become the subject of judicial proceedings. Moreover, procedures related to the registration of share ownership rights sometimes lead to instability in corporate relations. This article analyzes both theoretical and practical issues surrounding the sale of an LLC participant’s share to other participants or third parties. The article discusses opinions regarding the applicability of certain provisions of civil law regulating specific types of contracts (such as sale and purchase or assignment) to relations involving the transfer of a share. The study provides a comparative analysis of the procedure for transferring shares in the Republic of Uzbekistan and in foreign jurisdictions. Based on this analysis, proposals are made to improve certain norms of national legislation. The article also examines judicial practice related to share transfers, focusing on how courts apply relevant legal norms using the examples of specific cases. Current law enforcement issues and their underlying causes are analyzed within the framework of the existing legislation of the Republic of Uzbekistan, and the author formulates a conceptual position on potential directions for their resolution.