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RussianLegal resolved a corporate conflict at one of the country's largest MPCs

The Law Office successfully completed a complex task of protecting the interests of the majority shareholder of a meat processing plant and the subsequent buyout of the second owner's stake.

At the end of 2023, disagreements between the beneficiaries of a major food processing company in the Northwestern part of the country came to a head. The second shareholder blocked decisions on additional financing of the company, committed a number of unfriendly actions in order to get his share bought out at a price several times higher than the market price, and took some of his employees with him. This provoked a serious threat of multi-million dollar losses and risks for the business as a whole.

The Law Office's lawyers promptly proposed and competently implemented a strategy to protect and preserve the business, which included two stages: corporate actions to reduce the minority shareholder's negative impact on the company's operations and subsequent negotiations to resolve the conflict.

In the first two months, the Law Office's lawyers managed to stabilize the corporate governance of the business. This became a favorable ground for the negotiation process, which resulted in the signing of a comprehensive agreement between the shareholders on the full and unconditional settlement of the corporate conflict in peace and the redemption of the share of the second participant at a fair price. The peculiarity of the project was that all disputes were resolved without resorting to court proceedings - as a result, the conflict did not affect the company's relations with counterparties and did not affect the company's reputation.

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